Think You Were Missold Your Endowment Complain Now!!!! [CLOSED]

pilgjo

I wrote to Sesame (as they are the umbrella company) to complain about my endowment which I took out in 1994, aged 20. After 8 months they sent me a pack showing I had signed a paper saying I understood the risk as it quoted interest rates of &%, 9% and 11% and a possible failing to meet my mortgage of about £6000 in the worst case. In fact, the predicted loss is £28,000 (47% of my mortgage!) They are basically saying I wasn't missold the endowment and won't pay out. Is there anything else I can do?

:eek:

Wintertonholidays

We took out endowment policies for the same amounts with 2 companies, Brittanic Building Society and Norwich Union. When we were advised last year that both were showing a shortfall we decided to apply for compensation. The Brittanic Building Society were very helpful and sympathetic and after a minimum of correspondence offered us a satisfactory amount in compensation. On the other hand, the Norwich Union put us through nearly a year of uncertainty, a mountain of paperwork and many telephone calls before eventually telling us that in their opinion we are not entitled to any compensation.

Right from the start, we had submitted all our paperwork and forms, kept safely over the years, and also we could clearly recall what we had been told by their salesman who had sold us the policy. As it was a major event for us, we had clear recollections of the conversation we had with him.

At first Norwich Union stated that having spoken to their salesman he had no recollection of what he had told us, and 'as it was many years ago he could not be expected to recall what had been discussed at the time'. However, as the weeks and months went on, and we continued to contact the company in an attempt to claim compensation, they suddenly changed their story and said that having spoken again to their salesman, he then had total recollection of our conversation, and that he had not made any of the claims regarding the amounts of money we could expect to receive. By now he was stating that he had written on his report that having explained the risks, we had said that we were happy with this.

Had we been aware that we could face this shortfall, we would not have considered taking an endowment policy with Norwich Union.

We have of course taken this up with the FOS, who at first were in agreement with the Norwich Union, but having received a very angry letter from ourselves have agreed to look into it further. However, their last letter to us was sent on March 1st 2005, so we do not hold out much hope.

KK

I believe I was mis-sold an endowment back in 1991 when my husband and I bought our first property. We took out a £60K mortgage for our flat in Clapham and were advised to take out an endowment because it was 'portable' and would pay off our mortgage plus some. I had no idea it was invested on the stock market and might not perform. I really wish we had taken out a repayment mortgage and this just wasn't offered as a viable option.

When we moved 4.5 years later, we had wised up and took out a repayment for the new mortgage and continued paying into the endowment for another 4 years (until 2000). We then underwent a re-jig of our finances with an IFA and were advised that because of the type of endowment we should sell it. We thought long and hard and decided to go ahead, getting just over £8K (£90 per month paid in over 8 years). I was pleased with this amount as we could then put it into our new mortgage. It was approximately what we had paid in over 8 years, but no more. We had received letters advising us that it would not pay off the mortgage and we resisted their attempts to get us to pay more. Because it hadn't supported an interest only mortage after 1996 and because we sold it in 2000, do we still have a claim because we were definitely mis-sold it, but I'm not even sure how much of the paperwork we have left? There was never any indication that it might underperform. The broker from Allied Dunbar came round to our house and sold us the policy. Any advice would be welcome because up until now I have assumed we wouldn't have a case. Thanks

EdInvestor

pilgjo wrote:

I wrote to Sesame (as they are the umbrella company) to complain about my endowment which I took out in 1994, aged 20. After 8 months they sent me a pack showing I had signed a paper saying I understood the risk as it quoted interest rates of &%, 9% and 11% and a possible failing to meet my mortgage of about £6000 in the worst case. In fact, the predicted loss is £28,000 (47% of my mortgage!) They are basically saying I wasn't missold the endowment and won't pay out. Is there anything else I can do?

:eek:

Take the complaint to the Ombudsman (FOS). It should say this in the pack they've sent you.

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

dunstonh

It may be an idea for everyone to have their own threads, rather than clutter this one. It makes it harder to follow.

I wrote to Sesame (as they are the umbrella company) to complain about my endowment which I took out in 1994, aged 20. After 8 months they sent me a pack showing I had signed a paper saying I understood the risk as it quoted interest rates of &%, 9% and 11% and a possible failing to meet my mortgage of about £6000 in the worst case. In fact, the predicted loss is £28,000 (47% of my mortgage!) They are basically saying I wasn't missold the endowment and won't pay out. Is there anything else I can do?

Sesame are provider of services to IFAs. An IFA pays sesame to handle a number of areas. Complaints can be one of them.

You can complain to the ombudsman. However, if you have signed to say you understood there was a risk, then it would appear you haven't got much to complain about.

How are you able to predict your shortfall? I think you misunderstand what these projections are and what purpose they serve. They are purely projections assuming 4,5 & 6% growth. Your endowment may end up with 10% a year or 0% a year average. The projections are just 3 examples. They are also often, very inaccurate and shouldnt be relied on, in isolation, to get a "prediction".

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The Brittanic Building Society were very helpful and sympathetic and after a minimum of correspondence offered us a satisfactory amount in compensation. On the other hand, the Norwich Union put us through nearly a year of uncertainty, a mountain of paperwork and many telephone calls before eventually telling us that in their opinion we are not entitled to any compensation.

I like winterton. I often take the dog for a walk on the beach (out of season).

Anyway, your perception of Brittanic is that they were very good. In reality, that means that their advisor wasnt good enough and they have no grounds to support his advice. Norwich Union, on the other hand, believe their advisor did enough and there is adequate information on file to support that. The ombudsman agreed as well. They will look at it again but its not often that they overule a decision.

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because we sold it in 2000, do we still have a claim because we were definitely mis-sold it, but I'm not even sure how much of the paperwork we have left?

Unlikely you can complain now. Too much time has passed. Also, you probably sold it at the right time and with the amount received (breaking even after 8 years), you probably would find that there was little difference between the endowment mortgage and repayment mortgage at that point and no compensation would be paid anyway.

A 25 year endowment breaking even around year 8 would indicate that it was probably on track at that point.

phingers

I have a question if anyone can help please.
My Aunt was our financial advisor and has now retired. We took out a jlfd Friends Prov low start endowment for our first house. Start date 21/11/1994. Target amount £44500. Moneys invested 50% Managed and 50% Stewardship. Term 22 years. In January this year worth £8065 versus £9031 paid in.
Second jlfd endowment, with Clerical Medical taken out on house move. Start 19/6/98. Sum assured £34350. Term 18 years. 100% in Balanced Managed Life Fund.
We have had red warnings for both plans. We are unable to find additional funds to make up the shortfalls. Now after all that interesting information my question is simple.
Now that my Aunt is retired, will she still be chased after if we complain. Her advice was never detailed as such and meetings were very informal- we're family Billy! Do we have grounds for complaint or do we just put up and shut up? Any help greatly appreciated.

dunstonh

Now that my Aunt is retired, will she still be chased after if we complain.

If she was self employed, maybe. If she was an IFA on partner/sole trader basis, then yes. If she was an employee as a tied agent, then no. If she was an employee as an IFA, then maybe.

Families can have less protection than a normal consumer when it comes to complaints. I don't know how an aunt would be classed though.

As you have unit linked funds, both CM and FP have some excellent funds available which offer some good potential for growth. More than the balanced managed funds that you are in. A review of the policies and a bit of fund switching and you may find things are not as bad as you think.

elaineyork

How about if I've already sold my endowment?

defender_of_the_weak

Pilgo

Quoted rates of 8,9 and 11%. What were you buying? Signing bits of paper does not necessarily mean the policy was suitable or properly explained. sesame are one of the very worst at handling customer complaints and attempting to weasel out of responsibility for poorly sold products. We now have to routinely file all sesame cases with the Ombudsman after 3 months because otherwise they take over a year to complete a case, usually with a rejection and then we have to take them to the Ombudsman anyway

dunstonh

Signing bits of paper does not necessarily mean the policy was suitable or properly explained.

That would be just daft if the following is correct:

I had signed a paper saying I understood the risk as it quoted interest rates of &%, 9% and 11% and a possible failing to meet my mortgage of about £6000 in the worst case.

If you sign something to say that you understood there was a risk, then how on earth can you complain (successfully)?