mis-sold endowment policy

Jetters

Hello
Back in 1999 I took out an endowment mortgage with the Chelsea building society through an independent financial advisor Chadney Bulgin. They advised the offer of the mortgage was dependent on a life policy. We accepted to take out the policy, however, the BS then hit me with a critical life policy. My monthly premium paid to Scottish Widows was £204 a month. I was not aware until I received a statement from SW a couple of years later that only £50 of my premium was for the endowment and £154 was for the life policy!
Do I have a case for complaint for mis-selling?
I'd be grateful for any advice. Thankyou:(

jaybeetoo

Why are you questioning it 20 years later? Why didn't you raise it at the time?

What did the documentation you were given 20 years ago say?

Quentin

@ OP


Send a PM to a Board Guide and ask for your two threads to be merged

csgohan4

OP you perhaps have a case... mis bought perhaps, as above why now 20 years down the line.

You agreed to pay the premiums at the beginning. Just because you didn't need to claim on the insurance doesn't mean it's mis sold

Did you read the Terms and conditions?

Why notice on your bank statements now?

Jetters

From memory I don't believe we had a breakdown of the premium. I seem to remember I had to request documents from SW as they were not forth coming in automatically sending documents out and once received realised just how much I was paying. I queried it at the time with SW in 2005 but was sent round in circles between the IFA and SW. I didn't feel confident at the time and it is only now with all the mis-selling advice out there that has given me more confidence that I would like to try again as I believe I was mis-sold.

SonOf

We accepted to take out the policy, however, the BS then hit me with a critical life policy.

Optional. You had the choice to have it or not.

Do I have a case for complaint for mis-selling?

The IFA is only responsible for what they put in place. The BS is responsible for what it puts in place. If you use two different distribution arms then thhe other isnt going to know what you have chosen to buy unless you tell them.

As for missale, CIC does not overlap with life assurance. So, there is no issue there.

and it is only now with all the mis-selling advice out there that has given me more confidence that I would like to try again as I believe I was mis-sold.

What exactly is your complaint as its not clear from your post what it could be.

Jetters

Hi Sonof
Thank you for your comments.
My complaint is that I was not aware at the time of the high 75% of my premium would be for the life policy and only 25% would be for the endowment. I was aware of the total cost £204pm but didn't realise, as I stated above, that so little would be for the endowment until I requested a statement from SW. I expected the % to be the reverse 75% endowment 25% life policy. When I queried this with someone in the insurance sector (can't quite remeber) back in 2001 I was told £150pm for a life policy would be based on £1m cover! that is not what I thought I was paying for. This is why I believe I was mis-sold on this policy. Do I have a complaint for mis-selling? Advice is much appreciated and helpful.

SonOf

My complaint is that I was not aware at the time of the high 75% of my premium would be for the life policy and only 25% would be for the endowment.

There was never a requirement to state such a thing.

When I queried this with someone in the insurance sector (can't quite remeber) back in 2001 I was told £150pm for a life policy would be based on £1m cover! that is not what I thought I was paying for.

That would be on a level term assurance. Not an endowment. Endowments effectively were a combination of a decreasing term assurance and an investment.

The investment element was priced to achieve the target lump sum based on an average annual return of x%. That x% could be varied by the seller. The lower the target growth rate, the higher the premium (and vice versa). The unscrupulous, when they knew they were competing with another seller would increase the target growth rate to make their plan cheaper than the other. People buying by price would then by the cheaper but inferior plan.

Then you had the life assurance premium on top and then any CIC premium or WOP premium on top that. CIC is more expensive than life assurance. So, the more you bolted on, the more the premium rose but the investment element was unaffected by any of that.

This is why I believe I was mis-sold on this policy. Do I have a complaint for mis-selling?

Not based on what you have said as there is no breach of rules here. No-one was required to break down the cast of the insurance vs investment. So, the fact you were not told is not a missale reason.

Jetters

Hi Sonof
Thank you for your advice it is really helpful when someone can guide you in the right direction when your not sure what to do
So once again your advice is very much appreciated.:)