Mis-selling claim

[Deleted User]

Anybody able to give some advice based on their own experiences of complaints re mis-selling? ???

We have a purchase plan which is projecting a shortfall greater than the national debt (almost). "Rover" was not just "Wild", he was...well, furious!! Anyway, rant over.... >:(

They have admitted that their "records are insufficient to fully support the sale" of the contract. Is this the same as "unconditional surrender"? They have offered compensation, a penalty-free surrender and payment of any re-mortgage fees from our current lender or up to that figure if we go to another mortgage provider. The compensation is calculated to a figure they have worked out under guidance issued by the Regulator under "Regulatory Update 89" - fair trips off the tongue, doesn't it?

A "bloke down the pub", (not, as far as I know a frequenter of this site), suggested that they have probably only made us a first offer and that we should go back and ask for more.

Anybody believe that more can be negotiated out of them? The cash-in value plus the compensation is still less than we have paid in, although to be fair (did I just say that?) the payments to date have included the life cover element.

All advice greatfully received.

MarkyMarkD

No, I don't believe at all it's a "first offer". But you should study the calculation method (on the https://www.fos.gov.uk site I think) and calculate your own losses in the same way before you accept.

It's NOT an easy calculation to perform.

We are miles behind you on this, as our IFA just ignored the claim for about 2 years and we were rather slow in referring it to FOS who are now sitting on it because they are too busy. But our shortfall was £4k on £23.5k EVEN INCLUDING the benefit of the SL mortgage promise which has since been proved a bit hopeless.

One of my colleagues at work had a sensible offer from Halifax relating to his mis-selling claim, and has accepted it - so all satisfactory.

[Deleted User]

I can feel a scene from Monty Python coming on -

"a prejected shortfall of 4K on a target of 23K? LUXURY!"

Even at the best allowable growth quote (8% p.a.) when our policy "matures" in 2018 we are looking at a shortfall of nearly £12.5K on a target of £28K!!! Now that's what I call a shortfall . If the policy only grew at the lowest projection allowed (4%) we would get back less than we invested over the 25 years!! Our deal was arranged by our two hatted building society - you know, wearing one hat as a mortgage provider, then a second hat as a policy seller - same chap, same office, same day.

Accepting the offer of compensation plus cashing in the policy (Tax Implications???) would still leave us to find about £20k over the remaining 14 years so you can probably understand if I am a bit sore with the financial services industry, and why I feel that it is almost a duty to bite them back, often and hard!

Think I need a quick malt ;D and a rub down with the financial pages of the Sunday paper.

Still, it's good to know that some folk get offers which they find acceptable - I just find it hard to believe that companies could have got things so catastrophically wrong in the 90's. The cynic in me wonders if the companies were so desperate for market share, they implied that they were offering us the earth, but were being contractually bound to offer us only a small asteroid and were quite content to hope that all would be well, and if not, they'd point to a "can fall as well as rise" clause in a microdot at the bottom of page 4 and say "all bets are off!" If they sold cars that were as unreliable as their policies they'd be banged up by now.

Good grief - I certainly need that malt! (Bought cheap in France on summer hols - no extravagance nowadays!)

Cheers!

holiday-spain.biz

I have 2 policies - both way behind target. I was thinking of a compensation claim. Have info from one of the companies that do it for you, they seem ok but the 25% fee does seem high.

Has anybody made a claim and been successful? Are there any web sites that give advice on how to do it? I had a look at the FSA site but I dont think it is very clear.

Angus