Mis-sold endowment

Parstu

We are about to claim for a mis-sold endowment, listing about three of the reasons given on a template letter, I would really appreciate any advice as to wether or not to include the fact that when we took out the policy my wife worked for a bank and the endowment was sold to us by an advisor linked to the bank, I’m pretty certain the advisor received no commission for selling us the policy as my wife worked for the bank. Due to that fact we were given very limited advice, just not sure if this would help or hinder our claim

dunstonh

We are about to claim for a mis-sold endowment

Bit late to that party aren't you? Over three-quarters of the remaining endowments are not time-barred from a complaint.

listing about three of the reasons given on a template letter,

Don't use template letters unless you personalise them to use real reasons that apply to you. Template letters have a lower success rate than personalised complaints. Usually because template letters, if left unpersonalised can include complaint reasons that dont apply to you and can be easily refuted making you lose credibility.

I would really appreciate any advice as to wether or not to include the fact that when we took out the policy my wife worked for a bank and the endowment was sold to us by an advisor linked to the bank

The bank should know that. However, it may also mean you cannot complain as a number of banks offered endowments on a non-advised basis with staff discounts. So, don't be surprised if that comes up.

I!!!8217;m pretty certain the advisor received no commission for selling us the policy as my wife worked for the bank.

Staff ones usually didnt or at least very little.

Due to that fact we were given very limited advice, just not sure if this would help or hinder our claim

it hinders your complaint as the issue isnt whether you had an endowment or not. It as about the person who gave you advice. if no advice was given, then there is nothing to complain about.

its similar to people who followed the advice of the consumers association/Which? They couldnt complain either as they bought without advice.

When did your endowment end?
Did your statements get shortfall warnings?

Just asking to see if the 3/6 year timebar will likely apply or not.

Parstu

Thank you for your excellent advice, the policy matures in 2020, we have received notices in our annual statements that there is going to be a large shortfall, I understand that a time limit has been applied from when these notices have been issued, just being notified of that does not change the fact that bad advice was given in the first place, I have tried to personalise the template letter but to be fair I was expecting the company to reject the claim and for me to then appeal their decision. I think you have answered my main concern regarding my wife working for the bank, the advisor was independent and did not work directly for the bank. One other issue we have is that the insurance company who we originally had the endowment with were taken over and all members received a windfall, we have no record of us receiving this, should I include this in our letter.

Cheers

Edi81

Sounds as though the timebar will apply.

How long have your statements been warning you of a shortfall?

Why have you left it so long to complain?

Parstu

Just wanted to add that we had no idea that we could be compensated for the mis-selling of this policy until very recently, so the fact that the company warned us of a shortfall but did not inform us that we might be able to claim compensation, surely can not be acceptable that we would be time barred, what help was having this information if our options were not clearly explained. Cashing the policy in at that point was not something we wanted to do as the advice online and from endowment companies was that the policy bonuses could be much more in the last few years.

Parstu

Thanks for your reply

I really want to pursue this as we genuinely did not know we could be compensated for this until very recently, we have never received any PPi, what I don’t get is the fact that they have told us there might be a shortfall but do not give us any options other than we might need to save more Money to cover this shortfall

dunstonh

Cashing the policy in at that point was not something we wanted to do as the advice online and from endowment companies was that the policy bonuses could be much more in the last few years.

That wasnt advice. That was a generalisation. And its one that is not always correct. For example, most bank sold endowments were unit linked plans. Not With Profits. So, comments about bonuses wouldnt apply to unit linked.

Advice has a specific regulatory meaning. It has a set of requirements to be met. A factfind completed by the adviser detailing your circumstances and needs. Research and analysis carried out and a written report issued to you explaining the advice given and the risk factors.

what I don!!!8217;t get is the fact that they have told us there might be a shortfall but do not give us any options other than we might need to save more Money to cover this shortfall

That is something you need to look at or for you to refer to your adviser to discuss. Product providers do not hold the regulatory permissions to advise you.

macman

The fact that the endowment has underperformed does not in itself constitute mis-selling.

antrobus

Parstu wrote: »

Just wanted to add that we had no idea that we could be compensated for the mis-selling of this policy until very recently, so the fact that the company warned us of a shortfall but did not inform us that we might be able to claim compensation, surely can not be acceptable that we would be time barred, what help was having this information if our options were not clearly explained. Cashing the policy in at that point was not something we wanted to do as the advice online and from endowment companies was that the policy bonuses could be much more in the last few years.

Your mis-selling complaint has to be addressed to the person who sold it to you; i.e the 'independent advisor'.

What are you complaint reasons?

Parstu

Thanks again for your comments, our policy is a with profits

Parstu

dunstonh wrote: »

That wasnt advice. That was a generalisation. And its one that is not always correct. For example, most bank sold endowments were unit linked plans. Not With Profits. So, comments about bonuses wouldnt apply to unit linked.

Advice has a specific regulatory meaning. It has a set of requirements to be met. A factfind completed by the adviser detailing your circumstances and needs. Research and analysis carried out and a written report issued to you explaining the advice given and the risk factors.


That is something you need to look at or for you to refer to your adviser to discuss. Product providers do not hold the regulatory permissions to advise you.

Thanks again for your help, our policy is a with profits endowment plan