missed deadline on endowment policy

Lizabeth_2

I took an endowment out in 1988 (then Scottish Amicable now Prudential). I made a mis sold complaint to Barclays who have just informed me that as the time limit has expired they will not be investigating my claim (the time limit was apparently 12 May 2007). I thought Prudential were one of the companies who did not have a deadline for complaints.

However, since my telephone call to Barclays on 1 August 2007 when I first raised the complaint they chased me twice for the completed forms. If the deadline had already passed why did they not inform me of this at the time and why send out the forms, chase me for them then tell me I am too late?

I cannot trace having received a letter in October 2006 about the time limit but this is obviously not an 'exceptional circumstance' enabling me to go to the Financial Ombudsman Service.

Can anyone give me any help on this please?

EdInvestor

The deadline is 3 years after you receive a "red" letter warning you of a high risk of shortfall from the endowment provider.

Have you had such a letter?

dunstonh

Its not much of a problem though. Pru have such a good success rate with over 95% of Scot Am endowments hitting target and paying a surplus.

Even if you did get the complaint accepted, I would expect your response to be no redress payable because you are financially better off.

Lizabeth_2

yes I had received red letters but spoke with my IFA and he said not to worry.

Cube

Just for info: I complained about mis-selling of a ScotAm/Pru endowment dated 1988 and after much debate with the ombudsman and challenging their initial ruling my complaint was upheld. I received around £2k.

Cube

dunstonh

Cube wrote: »

Just for info: I complained about mis-selling of a ScotAm/Pru endowment dated 1988 and after much debate with the ombudsman and challenging their initial ruling my complaint was upheld. I received around £2k.

Cube

Recently?

Most Pru endowments have returned to a surplus position in real projection terms in the last 18-24 months.

Of course, people have been getting redress even when their endowment is on track for surplus which as another flaw of the calculation method.

EdInvestor

Lizabeth wrote: »

yes I had received red letters but spoke with my IFA and he said not to worry.

I suggest you obtain some updated projections of maturity values from the Pru.It may be that the policy is back on target.

Lizabeth_2

Cube wrote: »

Just for info: I complained about mis-selling of a ScotAm/Pru endowment dated 1988 and after much debate with the ombudsman and challenging their initial ruling my complaint was upheld. I received around £2k.

Cube

My problem is the fact I have apparently missed the deadline. How recently did you complain?

Cube

Hi,

my initial complaint to the Abbey was June 2003 which they rejected a couple of months later. I then went to the FOS in October 2003. A year or so later the FOS adjudicator upheld my complaint and the Abbey made me an offer of £0 i.e. no shortfall. I challenged the way Abbey had interpreted the figures because there had been a house move and some complex additional borrowing. Two years later (2006) the FOS adjudicator ruled against my calculations/reasoning. I then challenged the adjudicator's ruling and the ombudsman upheld my challenge. The Abbey had to recalculate and I received @£2k earlier this year.

So 3.5 years start to finish, lots of hassle but in the end I think a fair outcome.

Cube

EdInvestor

Cube wrote: »

A year or so later the FOS adjudicator upheld my complaint and the Abbey made me an offer of £0 i.e. no shortfall.

Redress compensation for endowment misselling is not designed to make up a shortfall.It is designed to put you in the same position you would have been in if you had taken out a repayment mortgage.

You have to take further steps to deal with any shortfall:

1.Surrender the endowment
2.Use the surrender value plus any redress money to reduce the size of the mortgage loan
3.Increase the monthly mortgage payment by the amount of the endowment premium

Then you can look at whether or not there is still a shortfall.

If there is, you may need to

a)Increase your monthly payment so as to overpay the loan
b)Remortgage to repayment, hopefully at a lower rate
c)Extend the length of the mortgage term.