Mis sold PEP with Interest only mortgage

coys2006

Good Evening Everyone,


Hopefully somebody out there could give me some advice.


When I first took out my mortgage around 18 years ago I went though a financial adviser at a local estate agent. I was advised to take out an interest only mortgage with Santander (Abbey National at the time) and take out a PEP with legal & general to pay off the loan at the end of it. Being young and a bit naïve at the time I took the financial advisers advice. About 18 months later I realised what I had signed up for and changed my mortgage to a repayment one directly with Santander.


I believe I can claim for being mis-sold a PEP by the financial adviser but I'm not sure how I go about it. Is there a generic letter I can send to them or could you advise me on how to word it.


Thanks in advance

dunstonh

I believe I can claim for being mis-sold a PEP by the financial adviser

No you cant. You are timebarred.

You have 6 years from the sale and 3 years from being reasonably aware of an issue to raise a complaint. Both rules have to be met. In your case they are both met as the sale was 18 years and you switched to repayment basis 16/17 years ago. So, well past the 3 year mark.

Plus, even if you were not timebarred, you would not be financially worse off. In year 1-5 of the repayment mortgage, you basically pay back peanuts. The ISA would actually be better than a repayment mortgage in the early years. It is the later years where the volatility can cause more damaging swings.

So, nothing doing here.

coys2006

Thanks for the speedy reply. Much appreciated.

jplevene

dunstonh said:

I believe I can claim for being mis-sold a PEP by the financial adviser

No you cant. You are timebarred.

You have 6 years from the sale and 3 years from being reasonably aware of an issue to raise a complaint. Both rules have to be met. In your case they are both met as the sale was 18 years and you switched to repayment basis 16/17 years ago. So, well past the 3 year mark.

Plus, even if you were not timebarred, you would not be financially worse off. In year 1-5 of the repayment mortgage, you basically pay back peanuts. The ISA would actually be better than a repayment mortgage in the early years. It is the later years where the volatility can cause more damaging swings.

So, nothing doing here.

No, you have 6 years from cashing in/closing the PEP, not from when it was sold.  You also have 3 years from being aware you could claim compensation and that it was wrongly sold.
An example of the three years is that you cashed it in 10 years ago,and last week you saw a program that said how PEPs had been mis-sold, spoke to an adviser who advised yours was as well.

-taff

The thread is two years old. An the FA wouldn't have been regulated in 1999 anyway. No one to complain to...end of.

dunstonh

No, you have 6 years from cashing in/closing the PEP, not from when it was sold.  You also have 3 years from being aware you could claim compensation and that it was wrongly sold.
No you don't.  It is 6 years from the sale (the event being complained about) and 3 years from being reasonably aware of an issue.  Whichever is the longer.

DISP 2.8.2

The Ombudsman cannot consider a complaint if the complainant refers it to the Financial Ombudsman Service:

1. (1) 

   more than six months after the date on which the respondent sent the complainant its final response, redress determination or summary resolution communication; or

2. (2) 

   more than:

   1. (a) 

      six years after the event complained of; or (if later)

   2. (b) 

      three years from the date on which the complainant became aware (or ought reasonably to have become aware) that he had cause for complaint;

   unless the complainant referred the complaint to the respondent or to the Ombudsman within that period and has a written acknowledgement or some other record of the complaint having been received;

An example of the three years is that you cashed it in 10 years ago,and last week you saw a program that said how PEPs had been mis-sold, spoke to an adviser who advised yours was as well.
Actually, that does not class as triggering the 3 year rule.   The three year rule needs a defined event.   Media coverage is not enough to allow a three year time bar to be applied.

The change from interest only to repayment basis is a trigger as it shows he had concerns at that time.

societys_child

jplevene said:

dunstonh said:

I believe I can claim for being mis-sold a PEP by the financial adviser

No you cant. You are timebarred.

You have 6 years from the sale and 3 years from being reasonably aware of an issue to raise a complaint. Both rules have to be met. In your case they are both met as the sale was 18 years and you switched to repayment basis 16/17 years ago. So, well past the 3 year mark.

Plus, even if you were not timebarred, you would not be financially worse off. In year 1-5 of the repayment mortgage, you basically pay back peanuts. The ISA would actually be better than a repayment mortgage in the early years. It is the later years where the volatility can cause more damaging swings.

So, nothing doing here.

No, you have 6 years from cashing in/closing the PEP, not from when it was sold.  You also have 3 years from being aware you could claim compensation and that it was wrongly sold.
An example of the three years is that you cashed it in 10 years ago,and last week you saw a program that said how PEPs had been mis-sold, spoke to an adviser who advised yours was as well.

Where's the rotfpmsl emoji?