Was I mis-sold? Do I have any case?

dmdrabble

Hello,

Just over 24 years ago, my father and brother sought advice from a mobile financial sales adviser. He asked me if I had any need for any financial advice or products that I was interested in. I was 18 at the time and lived at home, had a full time job and had savings left at the end of the month.

I asked him if he could set me up with a 5 year saving term ,where I started a new plan every 2 or 3 years. The plan was to have a lump sum every couple of years for life. He on the other hand had a different idea and after drawing graphs and giving me the sales patter, he talked me into buying an endowment policy over 25 years with life cover. Being naive and green I reluctantly accepted. He said that I could draw off the money or use it to pay off a house purchase earlier than expected. The policy has some life cover.

Around 5 years later, I bought a house with my wife. I had to pay extra to add her life cover and continued to pay the monthly standing order. Then came news in the 90s over exaggerated claims on endowments. My wife started working in a bank and was warned off relying on the policy to pay off the mortgage. We decided to start up a repayment mortgage to run alongside, which I have had since.

I was told a couple of years ago that the policy would not make the £40,000 + that was forecast. The policy is due to mature this year and I am not sure what the final figure will be.

My questions to the forum experts are:
1. Should I leave it to mature?
2. Should I look to withdraw now, rather than keep paying in?
3. Do I have any cause for complaint or is it my fault for not pushing back? Is it too late - I certainly wouldn't do it now?

I always felt a little cheated and although I signed willingly, it wasn't what I asked for. I felt I was bullied into signing. If the policy does draw dividends, then I have worried unnecessarily, but I fear it won't.

Being put off by the whole PPI claims culture, I was always put off by complaining.

The policy is/was with Laurention / Lincoln Life.

Any advice would be appreciated.

dunstonh

I asked him if he could set me up with a 5 year saving term ,where I started a new plan every 2 or 3 years. The plan was to have a lump sum every couple of years for life. He on the other hand had a different idea and after drawing graphs and giving me the sales patter, he talked me into buying an endowment policy over 25 years with life cover. Being naive and green I reluctantly accepted. He said that I could draw off the money or use it to pay off a house purchase earlier than expected. The policy has some life cover.

24 years ago, the product you wanted would not have existed other than a bog standard savings account. Savings endowments were the normal product of choice in that era and the minimum term was 10 years.

Then came news in the 90s over exaggerated claims on endowments.

You mean 2000s? Endowments didnt start falling short until the early 2000s. However, yours was a savings endowment and not a mortgage endowment from what you say.

I was told a couple of years ago that the policy would not make the £40,000 + that was forecast. The policy is due to mature this year and I am not sure what the final figure will be.

There was never a forecast given. Just example projections using a range of assumptions. Those assumptions changed over the years as the economy changed. The example rates were controlled by the regulator.

My questions to the forum experts are:
1. Should I leave it to mature?
2. Should I look to withdraw now, rather than keep paying in?
3. Do I have any cause for complaint or is it my fault for not pushing back? Is it too late - I certainly wouldn't do it now?

1 - we have insufficient detail on your plan and the terms.
2 - as 1
3 - You may have had grounds for complaint but you could be timebarred based on what you have said. You have 3 years to complain from being reasonably aware of an issue. Also, the sale 24 years ago for a savings endowment is the only bit the insurance agent was responsible for. The decision to later use it against a mortgage and then change your mind on that were later decisions he was not party to or advised upon. So, those later decisions were yours and not advised.

In effect, the policy is doing what you took it out for. it may be obsolete by modern standards but it was the norm back then.

magpiecottage

There is an argument that a 25 year endowment for a young person with no commitments or dependants was unsuitable. So you MAY be able to make a complaint.

If upheld, it is likely that you would be paid what it would have achieved if invested against a hypothetical benchmark.

I think your chances are probably about 50:50.

dmdrabble

Thank you both for your quick, detailed and honest replies.

I called the company for a projection, as the policy expires in November. There aren't any penalties or bonus payments at the end, so it will depend how the units go up or down between now and then.

I've decided that given the monthly cost we save between now and then and the difference in mortgage interest payments, that it will be a good gamble to cash in. we've just about broken even. A Swiss watch for my wife's 40th and riding my new Harley in the summer persuaded me also.

Thanks again.