Scottish Life/Royal London Profit Builder Endowment

elvina

Hi All

24 years ago I trusted my then financial advisor and purchased a Scottish Life Profit Builder Endowment. With a year to go till it pays out it looks like I will be making zero profit on my investment, I should have left the money under the mattress or better still put it into a bank.

The financial advisor that I had has died and I have just learnt that he didnt work for himself as he said but for a company who appears to have many incarnations.

I have spoken to Royal London who now own Scottish Life and they couldnt care less.

Before I contact the ombudsman I would love to hear from anyone who has had similar issues with this policy and to hear how you got on. Also if anyone else has come across the financial advisor companies named Poynton Financial Services or IFA Network Ltd I would also love to hear what you know about them as they were the companies involved in selling me the policy.

Thanks very much.

dunstonh

With a year to go till it pays out it looks like I will be making zero profit on my investment, I should have left the money under the mattress or better still put it into a bank.

are you sure? Whilst returns on these have gone down compared to their historic payouts, there are none that are not returning a profit better than a savings account. Are you perhaps only looking at the current value and not including the final bonus?

I have spoken to Royal London who now own Scottish Life and they couldnt care less.

Correct. It has nothing to do with them.

Before I contact the ombudsman I would love to hear from anyone who has had similar issues with this policy and to hear how you got on. Also if anyone else has come across the financial advisor companies named Poynton Financial Services or IFA Network Ltd I would also love to hear what you know about them as they were the companies involved in selling me the policy.

What similar issues? You havent stated what the issues are.

elvina

Thanks for the reply.

They are estimating between £13100 and £13900 when I have paid in over £11000. It was meant to cover a £27,500 mortgage.

The issues are very low return, policy that was promoted as being a great product etc.

dunstonh

They are estimating between £13100 and £13900 when I have paid in over £11000. It was meant to cover a £27,500 mortgage.

If you mean the projections are £13,100 etc then remember that these are example projections using example assumptions. Those assumptions are usually understating the likely to returns and they are not predictions or estimates. There are potential flaws with these too. Many of them project from the current value and not the surrender value (so final bonus ignored).

The issues are very low return, policy that was promoted as being a great product etc.

You are very very late into this. The endowment issue was early 2000s. You have 6 years form the start or 3 years from being reasonably aware of an issue to raise a complaint. The projection rates showing a shortfall position is usually the trigger point for the 3 year clock. Most of these started triggering the clock in early 2000s and were timebarred from complaint by 2007-8.

Today, over 3/4 of endowments are barred from complaint.

Returns are not something you can complain about. You may have other reasons and there may be other reasons but rate of return is always an unknown and as such, its not something that can be complained about.

TrickyDicky101

elvina wrote: »

Thanks for the reply.

They are estimating between £13100 and £13900 when I have paid in over £11000. It was meant to cover a £27,500 mortgage.

The issues are very low return, policy that was promoted as being a great product etc.

That's a very poor return (albeit without considering the cost of life insurance cover provided over the term).

Have you made your monthly payments consistently over the term and have not taken any breaks?

Does your latest annual statement show a split between basic sum assured, reversionary bonuses and any entitlement to final bonus?

elvina

Hi TrickyDicky101

Thanks for the reply which I have just spotted.

Have you made your monthly payments consistently over the term and have not taken any breaks? YES, EVERY MONTH ON TIME FOR 24 YEARS AND NEVER TAKEN ANY BREAK AT ALL

Does your latest annual statement show a split between basic sum assured, reversionary bonuses and any entitlement to final bonus?
NO

Since I posted I have spoken to Royal London. They were totally not interested. All that they were concerned about was that in 2000 they had sent me a letter saying that there was a potential issue. They then sent letters annual from 2005. Each time pretty much I rang them for a better indication which they said that they couldnt give me and I also tried to sell the policy which I couldnt so I had no alternative but to keep going.

When I took out the policy my financial adviser knew that I couldnt afford any risk and that I had no other means of saving money, even though I had no extra money to save as I was on a tight budget.

I have also contacted the financial ombudsman now.

Any suggestions would be very welcome.
Thanks very much.

dunstonh

When I took out the policy my financial adviser knew that I couldnt afford any risk and that I had no other means of saving money, even though I had no extra money to save as I was on a tight budget.

Endowment mortgages were typically around £20-£30 per month cheaper than repayment mortgages (with term assurance). The lower costs was one of the reasons people went with endowments.

I have also contacted the financial ombudsman now.

this would indicate your have complained to the financial adviser and they rejected your complaint. Was it because you are timebarred? (the FOS cannot overrule a valid timebar)

elvina

Hi Dunstonh

Thanks for the reply. The person who sold me the policy was, as far as I knew, a one man band. He retired some years ago and I believe may have since died as he was ill. The company no longer exists. I have recently learnt however that he was working for another larger company who were a part of an organisation called Sesame.

Thanks

AnotherJoe

elvina wrote: »

Hi TrickyDicky101

Thanks for the reply which I have just spotted.

Have you made your monthly payments consistently over the term and have not taken any breaks? YES, EVERY MONTH ON TIME FOR 24 YEARS AND NEVER TAKEN ANY BREAK AT ALL

Does your latest annual statement show a split between basic sum assured, reversionary bonuses and any entitlement to final bonus?
NO

Since I posted I have spoken to Royal London. They were totally not interested. All that they were concerned about was that in 2000 they had sent me a letter saying that there was a potential issue. They then sent letters annual from 2005. Each time pretty much I rang them for a better indication which they said that they couldnt give me and I also tried to sell the policy which I couldnt so I had no alternative but to keep going.

Yes you did you had an option to pay more money into the endowment or overpay the mortgage

When I took out the policy my financial adviser knew that I couldnt afford any risk and that I had no other means of saving money, even though I had no extra money to save as I was on a tight budget.

I have also contacted the financial ombudsman now.

Any suggestions would be very welcome.
Thanks very much.

Then you couldn't have made the house purchase without this and would have missed out on the massive capital appreciation of your house, so you'd have been worse off. So I don't see you have a complaint at all.

elvina

Hi AnotherJoe

The advisor never suggested anything other than an endowment with interest only mortgage so I dont know if I could have afforded it. My complaint is that I was told something would happen and it hasnt. I am barely making back my investment let alone making any interest on it. If I had paid it into the bank I would have got more back!

dunstonh

Thanks for the reply. The person who sold me the policy was, as far as I knew, a one man band. He retired some years ago and I believe may have since died as he was ill. The company no longer exists. I have recently learnt however that he was working for another larger company who were a part of an organisation called Sesame.

You dont get access to the FOS until you have complained to Sesame and they have given their response.

Sesame are known to use the timebar if the insurer verifies they issed the timebar material.

My complaint is that I was told something would happen and it hasnt.

Assuming there is no time bar, you will be asked what evidence you have to support your allegations. Sesame will see what evidence they have one file.

If I had paid it into the bank I would have got more back!

I suspect there is something missing here. I have seen Scot Life endomwents and they are not that bad.