endowment mis-sold ?

bomber2

I took out a endowment mortgage in 1990 with Halifax and a endowment with standard life,i then paid off the mortgage in 2001 and carried on paying the endowment until it matured early august 2015,i received my pay out 2-3 weeks later.I had a call last week from a company called emcas saying I was most likely mis-sold the endowment and they were willing to go-ahead on my behalf to reclaim the shortfall,the endowment pay out was £4300.00 short of the target,they said if I went with them they could claim it back for me,at a charge of 35% plus a 10% fee the government would want,on a no win no fee basis,they also said I was free to go the financial onsbudsment myself but I would only get one opportunity and if I failed to win it was my chance gone.has anyone else been in this same situation and what is the best route to go down.

mrginge

Its a scam.
Do a search.

They will ask you for a fee which you will never see again.

dunstonh

I had a call last week from a company called emcas saying I was most likely mis-sold the endowment and they were willing to go-ahead on my behalf to reclaim the shortfall,

are they still going? I thought they had gone seeing as the endowment issue is more or less dead nowadays. Anyway, they are talking rubbish.

Several issues in your case.

1 - you repaid your mortgage in 2001. So, even if you were mis-sold, the calculation for redress would be until 2001. You cannot claim the shortfall.
2 - Standard Life operate the timebar. you were probably timebarred around 2007/8.

they could claim it back for me,at a charge of 35% plus a 10% fee the government would want

The Govt do not want anything and do not get involved in it. That is a lie.

they also said I was free to go the financial onsbudsment myself but I would only get one opportunity and if I failed to win it was my chance gone.

You wouldn't get a different outcome with the FOS if you use a CMC or put in your complaint personally. That is just dodgy claims company spin.

Tab1969

I was sold an endowment by legal & general in 1995, whcih matures in 2020. i was eld to beleive it woudl pay back over £30000, but will fall well short of that. I wasnt aware you coudl claim for mis-sold endowments, is it still possible??

dunstonh

I wasnt aware you coudl claim for mis-sold endowments,

Have you been on Mars?

is it still possible??

If you are not timebarred then yes. However, over 3/4 of endowments are now barred from complaint.

You have three years to complain from first being notified of a high risk of a shortfall. Most of these warnings were issued around 2003-2005.

I dont know if L&G have timebarred or not but you can ask them if a complaint about your endowment is timebarred.

Really_nobody

I've tried the miss-selling route, but it got nowhere. However, what are the probabilities of redress for a product that is not 'fit for purpose'? A homebuilder policy from GFS is now set to pay out only 50% of intended value. Surely someone, somewhere has not been fulfilling their investment role.....it is, supposedly their job. In that sense, I see it no different to any other item that one purchases in that its appropriateness and function is sorely lacking to the point of non-existence.:mad:
Yours (more in hope than expectation)

dunstonh

I've tried the miss-selling route, but it got nowhere.

Most didnt. I believe the average uphold rate was around 25%. (some distributions were better/worse than others).

However, what are the probabilities of redress for a product that is not 'fit for purpose'?

zero

A homebuilder policy from GFS is now set to pay out only 50% of intended value. Surely someone, somewhere has not been fulfilling their investment role.

It has little to do with investment performance relative to market average. Indeed, many endowment funds have done very well relative to market returns. The problem is the target growth rate for most.

Returns in the 80s and 90s were higher than than the 2000s. The 2000s have seen two massive drops on the stockmarkets of the level you normally only get once in a generation.

In that sense, I see it no different to any other item that one purchases in that its appropriateness and function is sorely lacking to the point of non-existence.

They have done exactly what they said they would do. i.e. invest the money and if it grows by x% a year it will pay off the mortgage. If it grows by more than that there will be a surplus and if it grows by less than that then there will be a shortfall. Exactly what it says on the tin (or the product illustration issued at point of sale and followed up with the cancellation rights and put in the key features document)

Really_nobody

Thanks. Well, as I said it was more in hope than expectation. Just got to find more of my 'hard earned' which, in truth, I would more than like to describe as being well brassed-off. (and I will continue to muse how much bonus the directors of said company paid themselves)

dunstonh

Really_nobody wrote: »

Thanks. Well, as I said it was more in hope than expectation. Just got to find more of my 'hard earned' which, in truth, I would more than like to describe as being well brassed-off. (and I will continue to muse how much bonus the directors of said company paid themselves)

On the plus side, you are better off than you would have been had the old economy continued which would have resulted in the endowments hitting target. Interest rates are much lower and you are paying less to the lender. Plus, most people found that the endowment mortgage was around £20pm cheaper than the repayment mortgage. £20pm over 25 years is £6000. So, a shortfall less than £6k may still see you better off. (lower monthly cost was a common reason why people selected it).

Really_nobody

Unfortunately, it's a lot, lot more than £6k.......hence my 'not fit for purpose' comment