Mis-sold endowment mortgage

JSP1

I complained to my mortgage supplier that it mis-sold me my endowment mortgage; they upheld my complaint but have offered - based on my IFA's calculations - a totally inadequate compensation amount. My mortgage supplier refuses to let the Financial Ombudsman Service investigate my complaint because, they say, it's over 6 months since they sent me their Final Decision letter. I have contacted the Financial Ombudsman Service and they've said that can't investigate on my behalf because the mortgage supplier has invoked the 6-month rule. Is their anything further I can do (e.g. anyone I can appeal to) or do I have to just accept my mortgage supplier's stance? Any advice/comments would be greatly appreciated.

Bogalot

Unless you have exceptional circumstances to account for the delay then no, there is nothing further you can do. If you want to give more details we may be able to offer an opinion on whether the bank's calculation was correct or not.

dunstonh

Is their anything further I can do

No. The 6 month rule can only be waived by the firm you are complaining about or overruled by the FOS if there is sufficient justification for not responding during the period of the delay. That only tends to be incapacity or bereavement of a direct family member.

but have offered - based on my IFA's calculations - a totally inadequate compensation amount.

The redress method is defined. It is not something that is normally got wrong. It should be a comparison of where a repayment mortgage would have your balance now vs the original amount minus the surrender value of the endowment policy.

If you have already repaid the mortgage then it would be calculated to the point you repaid it. If you have paid extra off the mortgage, then this reduces the redress.

What is the provider doing with the calculation to make you think it is wrong?

Bernard_Toner

Hi I had endowment mortgage which paid out but did not pay out at what we thought they would I complained at the time and I now have asked for the recordings of the telephone conversations Countywide said that at time there was 3 calls made they can now only find two recordings with nothing on them I have all the paperwork from day one the ombudsman says they will take it on but I need a good reason I think all information is in that first call but how can I prove it My husband has been going through cancer so I really need the help I hope there is some way I can prove that We were mis sold this at the time of taking out the endowment the financial advisor said it was compulsory to take it out we would be better off taking out the higher payment as we would benefit in the long run we struggled all of our lives to pay this Looking back now we should have just opted for a repayment mortgage and paid it off ourselves because we have lost out anyway Countywide took this over by from Save & prosper Countywide first say we are out of time then when we questioned this they now say they can't find the telephone conversation I have to ring the osbudsman back please can you give me any advice Thank you Maria mclaughlin

Voyager2002

I don't think the recording of the telephone call would make any real difference. There are two key issues: was the endowment mis-sold?, and did you complain before you were out of time?

dunstonh

Bit out of breath reading your post of just one sentence

Telephone calls are largely irrelevant unless the whole advice process was done over the phone. Key documents are the factfind and suitability report.

the ombudsman says they will take it on

Which they do with everybody until they actually look at the complaint and the response from the firm.

the financial advisor said it was compulsory to take it out we would be better off taking out the higher payment as we would benefit in the long run

For an interest only mortgage, it used to be compulsory to have a repayment vehicle and back in those days that usually meant an endowment.

we would be better off taking out the higher payment as we would benefit in the long run we struggled all of our lives to pay this Looking back now we should have just opted for a repayment mortgage and paid it off ourselves

Typically, endowment mortgages were cheaper than repayment mortgages. That was one of the most common reasons people bought them. Certain points in the interest rate cycle could swing it more or less but over the later decades it mostly favoured endowments. If you struggled, then a repayment mortgage would still have been a struggle.

Countywide first say we are out of time then when we questioned

Which you probably are. Most endowments were timebarred from complaint by around 2007-9. The firm has to volunteer to look at it. Countrywide may use that bar to stop the FOS from looking at it.

I have to ring the osbudsman back please can you give me any advice

Phone calls wouldnt make any real difference unless the whole advice process was done by phone or there is some really wrong info on the phone. For any phone call to exist after all this time is pretty much a miracle. If the two calls show no wrongdoing and a third is gone then there is nothing you can do about that.

The key thing is the evidence that is available. What documentation do you have to support your allegations? The FOS will listen to your side of the story but ultimately, the most weight goes on the suitability report.