Mis-sold endowment

Parstu

antrobus wrote: »

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?

Our main grievance is the grossly exaggerated returns that the provider told us we would achieve, we still have a sheet that they gave us at the interview that gives an estimated return of £93,180 for a premium of just £50 per month for 25 years, we have been paying £79 per month for 23 years and our current predicted return is around £28,000, their literature shows a comparison with their with profits plan and retail price index and a building society investment, basically proclaiming you’d be mad to not take out this policy

antrobus

Parstu wrote: »

Our main grievance is the grossly exaggerated returns that the provider told us we would achieve, we still have a sheet that they gave us at the interview that gives an estimated return of £93,180 for a premium of just £50 per month for 25 years, we have been paying £79 per month for 23 years and our current predicted return is around £28,000, their literature shows a comparison with their with profits plan and retail price index and a building society investment, basically proclaiming you’d be mad to not take out this policy

See post no 8

Nearlyold

Our main grievance is the grossly exaggerated returns that the provider told us we would achieve, we still have a sheet that they gave us at the interview that gives an estimated return of £93,180 for a premium of just £50 per month for 25 years, we have been paying £79 per month for 23 years and our current predicted return is around £28,000, their literature shows a comparison with their with profits plan and retail price index and a building society investment, basically proclaiming you!!!8217;d be mad to not take out this policy.

The growth rates used in illustrations were set by the regulator, all companies selling endowments would use the same projected growth rates, there would have three different illustrations for 3 different growth rates low medium and high, at the time they were not out of the way (think of the mortgage interest rate you were paying at the time).

dunstonh

Our main grievance is the grossly exaggerated returns that the provider told us we would achieve, we still have a sheet that they gave us at the interview that gives an estimated return of £93,180 for a premium of just £50 per month for 25 years, we have been paying £79 per month for 23 years and our current predicted return is around £28,000, their literature shows a comparison with their with profits plan and retail price index and a building society investment, basically proclaiming you!!!8217;d be mad to not take out this policy

The projection rates uses were set by the regulator. Not the provider. So, a complaint against projection rates would fail as the provider has no choice but to follow what the regulator says.

Charts showing past performance would have shown endowments doing well. No endowment had ever failed prior the dot.com period and most were paying out 2-4 times what the mortgage balance was. However, the same paperwork would have also given you risk warnings that it was no guaranteed and you could get back less. Complecency did mean that most ignored the warnings and with endowment mortgages being cheaper, that was why many went for them.

At the end of the day, you need to make your complaint but at least you are aware of the issues that are possibly going to arise.

Parstu

dunstonh wrote: »

The projection rates uses were set by the regulator. Not the provider. So, a complaint against projection rates would fail as the provider has no choice but to follow what the regulator says.

Charts showing past performance would have shown endowments doing well. No endowment had ever failed prior the dot.com period and most were paying out 2-4 times what the mortgage balance was. However, the same paperwork would have also given you risk warnings that it was no guaranteed and you could get back less. Complecency did mean that most ignored the warnings and with endowment mortgages being cheaper, that was why many went for them.

Many thanks for your very helpful advice, I’ll obvio have to do some more research before we put a complaint in, it’s a great help to get various bits of advice and information from people who have a much better idea of how these things work

At the end of the day, you need to make your complaint but at least you are aware of the issues that are possibly going to arise.

Many thanks for your very helpful advice, I’ll obviously have to do some more research before we put a complaint in, it’s a great help to get various bits of advice and information from people who have a much better idea of how these things work

AnotherJoe

Parstu wrote: »

Our main grievance is the grossly exaggerated returns that the provider told us we would achieve

If that is your main reason, and if that was valid, then just about every single endowment missell claim would succeed. And they don't. You'll need a much better reason than that.

fewcloudy

Parstu wrote: »

Our main grievance is the grossly exaggerated returns that the provider told us we would achieve, we still have a sheet that they gave us at the interview that gives an estimated return of £93,180 for a premium of just £50 per month for 25 years, we have been paying £79 per month for 23 years and our current predicted return is around £28,000, their literature shows a comparison with their with profits plan and retail price index and a building society investment, basically proclaiming you’d be mad to not take out this policy

Hi Parstu,

Who is the endowment policy with?

Have you had a read through this thread, just for rough comparisons maybe, and to see sort of amounts people are currently receiving?...

https://forums.moneysavingexpert.com/discussion/3889479/anyone-with-a-25-year-endowment-which-matured-recently&page=11


Your estimated return of 93k for 50 quid a month for 25 years seems ginormous!

I started one about 2 years before you (1993), cost me £55 a month for 25 years, expected return 35k...

I know a "few years" matter with these things, and age of policy holder(s) and many other things come into it, but 93k, are you sure?

Parstu

fewcloudy wrote: »

Hi Parstu,

Who is the endowment policy with?

Have you had a read through this thread, just for rough comparisons maybe, and to see sort of amounts people are currently receiving?...




Your estimated return of 93k for 50 quid a month for 25 years seems ginormous!

I started one about 2 years before you (1993), cost me £55 a month for 25 years, expected return 35k...

I know a "few years" matter with these things, and age of policy holder(s) and many other things come into it, but 93k, are you sure?

Yes, that what their literature says don’t know how to upload a photo on to this site otherwise I would photograph it, cheers

lisyloo

It was an estimate not a guarantee.
You agreed to take the risk/gamble and probably signed to say you agreed to it.


As you've been told poor performace is NOT a valid reason for mi-seeling.
That's a bit like buying a lottery ticket and then claiming mis-seeling for not winnig.


IF the projections followed the regualtions at the time and IF you signed to say you agreed and understood and all the paprerwork is in order then you will lose.


Sometimes the paperwork is not in order and sometimes people win cases because the seller doesn't have the correct records in place.


BUT the fact that you took a gamble and it went badly does not mean you were missold.

Reaper

Parstu wrote: »

Yes, that what their literature says don!!!8217;t know how to upload a photo on to this site otherwise I would photograph it, cheers

You can store your photo online. Try a Google search for "forum pictures" and select a free site. Then use the "Insert Image" button (icon shows a mountain) to link to it.

If the prediction was in excess of the guidelines at the time that could be grounds for complaint.

Remove any personal info from the picture that identifies you of course.