Are you happy to still pay commission on mis sold endowments

loveabargin

I was mis sold my mortgage endowment policy in 86 and at present it's still looking like it will not make the target figure. As this policy is pre 88 no one wants to know.

So I spoke with the insurance company to see whether commission was still being paid to the IFA/Company who sold me this policy and it was, so I asked for the monthly payments to stop.

Ok its was only 98p a month but it made me feel a little better and why should they still get paid for not being truthful to me.

Anyone got any comments on this or done the same as me?

dunstonh

Most endowments were sold by tied agents and you cannot cancel the renewals on these as the tied agent doesnt get them as they get indemnified commission up front or their remuneration is linked to a bonus package.

If it was a solicitor/accountant/ifa and the firm no longer exists, then the money wont be paid out either.

As I said in response to your other post on this, most renewals are very small. The one's I get range from a few pence to around 30p a month. It costs more to admin on those then they are worth.

Also, a number of insurance companies will not cancel renewals but will allocate them to another agency. So, if you have a current IFA, you could allocate it to them. Although whether they want the pence each month is a different matter.

toonfish

loveabargin wrote: »

I was mis sold my mortgage endowment policy in 86 and at present it's still looking like it will not make the target figure. As this policy is pre 88 no one wants to know.

So I spoke with the insurance company to see whether commission was still being paid to the IFA/Company who sold me this policy and it was, so I asked for the monthly payments to stop.

Ok its was only 98p a month but it made me feel a little better and why should they still get paid for not being truthful to me.

Anyone got any comments on this or done the same as me?

I have, but you really don't want to hear them

EdInvestor

This could be a positive thing to do, depending on what the insurance company does with the money.

If they paid the trail commission saving into the With profits fund, then you and other WP endowment holders at your company would benefit at the expense of the IFAs and banks which receive the money now.(Perhaps the banks would find it less necessary to impose high penalty charges on customers if they aren't paying out such commissions...)

If however it just goes into their general balance sheet, the insurance company's shareholders will benefit. Of course at some companies, many policyholders are also shareholders.

Why not ask what they will do with the money if you withdraw permission to send it to the seller and let us know?

loveabargin

The money goes into the general balance sheet so as a share holder I was happy with that. Just find it strange that IFA's that's posted on here have got so rattled considering as dunstonh said in this post
http://forums.moneysavingexpert.com/showthread.html?t=567325&page=2
that I have proberly done them a favour.

Thanks for your other post on the endowment, now I have to decide what to do

toonfish

loveabargin wrote: »

The money goes into the general balance sheet so as a share holder I was happy with that. Just find it strange that IFA's that's posted on here have got so rattled considering as dunstonh said in this post
http://forums.moneysavingexpert.com/showthread.html?t=567325&page=2
that I have proberly done them a favour.

Thanks for your other post on the endowment, now I have to decide what to do

which IFA's have got rattled?

dunstonh

I am the only IFA posting on this thread and I am not rattled. Indeed, as I said, commissions in the pence cost more to administrate so wouldnt be bothered in the slightest. I think you need to look at it in context to what a good IFA earns. If you are earning £10k-£15k pm then are really going to worry about a 36p coming off.

toonfish

dunstonh wrote: »

I am the only IFA posting on this thread and I am not rattled. Indeed, as I said, commissions in the pence cost more to administrate so wouldnt be bothered in the slightest. I think you need to look at it in context to what a good IFA earns. If you are earning £10k-£15k pm then are really going to worry about a 36p coming off.

I didn't realise you only worked part-time