Can I claim for mis-selling on an endowment policy?

filigree_2

I wonder if anyone can cast light on this because I honestly don't understand the issues that well.

Back in 1988, like a lot of people I was struggling to find a mortgage (eventually ended up in negative equity, usual story). I was buying with two friends. The estate agent offered to find us a mortgage and as we were young and ignorant we trusted the snake. He organised everything and we ended up with an endowment mortgage from the Nationwide, with an endowment policy from Legal & General. Eventually we bought a flat from a different agent but continued with the original mortgage application in the interests of speed as we were trying to beat the MIRAS deadline.

I don't believe we got proper advice from anyone. The estate agent was a sleazebag, the solicitor spend about three minutes with us. The Nationwide have been uniformly appalling since (I wouldn't take out any account with them now). All the Nationwide mortgage adviser did was show us a printout showing the different products and let us pick the one with the lowest monthly payments! No-one spoke of the pitfalls of endowment mortgages and I didn't learn about them till it was publicised years later.

My £20K endowment is predicted to pay out £12K worst case, maybe £15K. I don't need the policy to pay off a mortgage now, I am moving soon and plan to take out a repayment mortgage. I'm not concerned about losing my home over all this, just a bit narked that I won't get the payout I was originally promised.

Do I have any come back on this? I can't remember the estate agent's name whatsoever. I no longer have contact with the two friends I bought the flat with, and as for the Nationwide... it's their word against mine. I no longer have any paperwork relating to that property.

Should I just give up and write off the loss as a youthful mistake?

EdInvestor

Filigree

When in 1988? If it was before the new regulations came in you would have to complain direct to L&G on a "duty of care" basis, if after, then it's the estate agent, and if he's gone, it's the FSCS compensation scheme.

Whose names are on the endowment? All three of you?

https://www.endowmentaction.co.uk has loads of good info on making a claim.

filigree_2

Thanks for the link, from what I've read I don't really have a case, at least I can't prove it so long after the event with no documentation . I'll just write it off to experience.

Rikki

I complained about my endowment when I received notice of it under performing. I phoned them and said "I was sold the policy and told it would cover the mortgage at the end of the 25 year term, at no time did they mention it might not cover the full amount. It was always explained it would cover the full amount and probably with profit. I complained I had been miss informed and ill advised."
( this sounds like what has happened to you )
Your word is as good as theirs They have to prove you were advised as to all eventualities. You have nothing to loose.
My complaint was up held.

dunstonh

Thats all fine and if you happen to come across a provider/advisor with poor documentation records, then you stand a good chance. Of course, you could have one which has fully documented everything and you end up looking like a liar.

Some dont care about that and are willing to take a chance. This includes a case recently highlighted by an ex IFA who put a complaint in and said they didnt understand the risk. That case is almost certainly going to fail.

Recent comments in the press from the FOS does suggest that they are looking more closely at people who suggest they knew nothing yet evidence points otherwise. If you say you werent told 3 things and the provider can proof you did on 2 of them, are they likely to believe you on the third when it was clear you lied on the other 2 (you, as in hypothetical claimer not a poster here). In the past, they may have done but they have been under pressure to be a bit more objective. This is where some of the ambulance chasing companies that quote a standard list of mis-sale reasons where have are not valid have started failing.

You dont need to have proof at your end. As long as you dont lie, then you have a good chance.