Endowment Mis-selling - Do I have a case?

Goldiethedog_2

???I have considered trying for compensation for our endowment for a while and finally decided to try before it was too late. So anyway I went to the endowment action site and basically followed the standard letter which went a little like this:

"I am writing to you to make a complaint about the way I was sold my mortgage endowment policy. I believe, for the reasons set out below, that I was mis-sold this policy and am requesting you to investigate the sale. I am also requesting that you send me a copy of my endowment file so that I can see all the documentation you have relating to my case.

An adviser in your company sold me a CIS Endowment policy in January 1997. The target amount and guaranteed death benefit was £55,500.

The reasons I am complaining are as follows:
· The endowment was not suitable for me
· The adviser did not explain there was a risk the endowment would not meet the target amount. Indeed quite the opposite. We were first time mortgage borrowers and were unfamiliar with the differences between the different mortgage types. Our advisor was due to retire early from the amount paid out by his. We were told numerous times about his daughter who he took out an endowment policy on her behalf when she was 16 and her house was now paid off in full with a cash amount of many thousands extra. The worst-case scenario we were told was that we would have no cash bonus at the end of the term.
· The adviser did not discuss in full the funds my endowment was to be invested in. None at all. We were not told monthly payments were to be invested in funds and would not pay off the loan until it’s maturity date.
· The adviser did not properly establish my attitude to risk – risk wasn’t an issue and we were advised there was no risk with regards to payment of the full outstanding amount.
· The sale didn't follow the rules
· No fact find was completed during the sales process and therefore the adviser did not have full knowledge of our financial situation.
· The adviser said the policy would definitely pay off the mortgage
· And the adviser said there would be a lump sum in addition at the end of the term. On each visit up to signing, he would quote his daughters cash bonus case.
I would be grateful if you could reply to this letter within 14 days and handle this complaint according to your usual complaint procedures. A copy of this letter has also been sent to the Financial Ombudsman. “

CIS replied within 7 days of this letter asking me to fill in their questionnaire and give current mortgage details.

I told them we remortgaged to a 100% fixed repayment 2 years ago so we could guarantee repayment at the end of the term – we had been warned there may be a shortfall. We still have the endowment (partly used to keep costs down on the life insurance on the remortgage) as I feel we would lose by cashing it in and look forward to a lump sum of some kind in 18 years time.

CIS then replied within 10 days saying my complaint was not upheld with the reasons why. They say they viewed copied of their files including the ‘profile build’ and the Key Features document and Reasons Why letter which were issued to us at the point of sale.
Indeed looking at my files I have these documents and they do state figures are only examples for the investment etc. As far as CIS are concerned this covers them.
My question is really then, is it worth carrying on with the complaint? As the letter from CIS rightfully states, “I have had to rely on the documentary evidence and therefore cannot be sure what was discussed at the point of sale, or indeed how you (I) interpreted the information”.
The sales guys SO wanted us to take the endowment option even though it was slightly more expensive than the repayment scheme per month. They probably did show the documents but also assured us that they were bound for legal reasons do this but the investment would certainly outstrip the performance shown and we would have a cash bonus after 25 years – just as he and his daughter had. We were in our mid 20’s with no investments at all – just student loans.

So should we fight on? Do we have a case? Is so what should we do?

Thankyou

dunstonh

Who knows if you have a valid claim or not?

The problem with standard letters is that they say things which are not necessarily true plus and what you have written is that Co-op have proved you were "incorrect" in remembering some of the things. If you were wrong on those things, you were probably wrong on other things. This means that only documentary evidence can be relied on.

Goldiethedog_2

Well you could say the coop looks to say they have covered themselves with documents but this still deosn't save the sales pitch to 2 young and financially inexperienced people. Why didn't we take the cheaper option of repayment? Because we were blinded by the pitch and eagerness for us to take the endowment.
So, if it really is "who knows if we have a valid claim or not?" then is it worth pursuing?
After reading all the advice of when is it right to try to make a claim i thought we had the right foundations. But what sort of evidence do I need? Do I need the issuing company to have gone into liquidation and destroyed all their documents or a clear lack of documentary evidence? How does anybody know how the policy was 'actually' sold by the sales persons?
Am I in the wrong boat for this? ???

dunstonh

The problem with endowment mis selling is that there is the three truths. Your truth, the salesman/insurance company and then what really happened. All three will be different.

Because of this, a lot of weight will be placed on the documentation issued.

Due to the quick response, it is almost certain that they have not contacted the original salesman. So its not a case of his word against yours at this stage.

If you tell them you are not happy with the outcome and then take it to the ombudsman, they could then go to the original advisor and ask him what was said. You then get back to the three truths. You will have said you didnt get this that and the other but the co-op may be able to provide copies of what was issued and said and maybe even signed by you.

So you really need to be sure in your own mind that it was missold. If you are sure, then take it further.

Goldiethedog_2

I know for a fact that the salesman that sold it us retired a year later. He was a nice man out for his commission.
I think I will try this further and really give all to the ombudsman.
Do I now have to inform coop of this as well or let the ombudsman do this?

Do you think it is worth paying into the endowment for another 18 years or should I be paying my money elsewhere, ie off the repayment?

Thanks

suzy-wong_5

is there an address for the ombudsman

dunstonh

I know for a fact that the salesman that sold it us retired a year later. He was a nice man out for his commission.
I think I will try this further and really give all to the ombudsman.
Do I now have to inform coop of this as well or let the ombudsman do this?

Do you think it is worth paying into the endowment for another 18 years or should I be paying my money elsewhere, ie off the repayment?

Thanks

Write back to the Co op and tell them that you reject their response to the complaint and that you want it referred to the ombudsman if they do not wish to reconsider. Every referral to the ombudsman costs money to the company even if the complaint is not upheld (unless its considered trivial) so they may offer you a couple of hundred just to save money by referring it on.

I cant answer if the endowment is worth continuing or not as that requires more information about the plan, the make up of their with profits plan, values and charges.

Backbiter

is there an address for the ombudsman

https://www.financial-ombudsman.org.uk