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

Cullumpster

Kelvin wrote:

Thanks for the web link for letter of complaint, the thing is I can’t remember who sold me the plan, think it was an independent financial advisor working in the estate agents who were selling the house, this was in 1989. Yeah I know, I know, but was my first house and didn’t have a clue.
Can I complain to the company that holds the policy, Eagle Star, instead?

This has happened to my mum, she was told that she would be able to pay off the mortgage and have a big lump sum left, and has since had 'the letter'.

Anyway i told her that she should be able to complain which she rightly did, but has been told that the company that sorted out her mortgage has now gone bust so she is entitled to didly squat and is now £43000 short on her mortgage which ends in 3 years!!!!

Fullup

Fullup wrote:

I have sent off my letter to Lincoln, I'll let you know how I get on

Fullup

Well Lincoln were quick, I have received a letter from them today asking me to complete a questionnaire.

Now all I've got to do is cast my mind back 15 years to be able to answer the questions. :rolleyes:

mysterymum

I used the online letter and it was very helpful. However, I was training to be an auditor when I took out my mortgage, and although I had no knowlege of mortgages of any kind, the ombudsman said that I should have been aware that there was a possibility of a shortfall as I was working in finance! I think I have a strong case otherwise. This seems totaly wrong, how do they know what knowledge I had? Can I take it further if I disagree with the Ombudsman?

freddy27

I am totally disgusted at the attitude being taken by people who are now moaning that they were miss sold endownment mortgages. The majority are liars.
I sold many "Low cost endownment mortgages in the 80's" Always with the proviso that every 2 years, the policyholder "Updated their payments" to include their better financial circumstances. How many did? Did you?
Unfortunately, I retired through ill health in 1988 and was unable to keep up with all my policyholders increases in income, and therefore advise them to increase their % rates of contributions to their mortgage. Now of course its the Insurance Companies fault, never of course THEIRS. We cannot blame people for their stupidity.

FOSman

This will make you all laugh. I had a complainant today who said that he didn't understand the illustrations and did not understand the risks attached to his policy.

What did he do for a living.....he was a futures currency trader for one of the largest banks in the world!! :mad:

Mystery mum. Surely you could have understood the notion of assumed annual rates of return?? You were training to be an auditor?!?! If the policy grows at X% PER ANNUM, then the policy will pay of the mortgage?!?!?

That is what they are saying. They didn't expect you to understand mortgages, but you should have understood that basic element of the policy.

dunstonh

I know from my experience, that people went for the cheapest option nine times out of ten, whether that was repayment mortgage or endowment mortgage. I am thankful that my client files include a comparison and a signed reason why that type of mortgage was taken.

EdInvestor

mysterymum wrote:

I was training to be an auditor when I took out my mortgage, and although I had no knowlege of mortgages of any kind, the ombudsman said that I should have been aware that there was a possibility of a shortfall as I was working in finance!

Now if you had said training as an actuary, I might agree....

But if your endowment was a With profits one, I'm afraid that working in finance is no qualification whatsoever for understanding this opaque and complex investment system, administered by maths boffins, no less.

It's very apparent that even the FSA didn't understand With-profits properly until quite recently and when it did figure out what was going on, it moved rapidly to pretty well shut it down. :eek:

It's no accident that when people start to explain With-profits, the words "smoke and mirrors" quickly follow. The baffling nature of WP is a major reason why a product sold as safe to millions of cautious investors has caused such big losses.

The Ombudsman is talking nonsense.

dunstonh

It's very apparent that even the FSA didn't understand With-profits properly until quite recently and when it did figure out what was going on, it moved rapidly to pretty well shut it down.

Can you post any links from the FSA that confirm that they are shutting down with profits funds? Seeing a number of new with profits funds launch of the last couple of years seems to be at odds with that statement.

I believe what you are really referring to is the legacy conventional with profits plans with a guaranteed sum assured plus bonuses rather than modern unitised with profits plans. Even then, they are not being shut down but the providers being encouraged to treat the policyholders with those funds fairly (treat clients fairly being the FSA's big thing at the moment). The modern plans are more generally a cautious or balanced managed fund with elements of smoothing. Although still not my cup of tea, there are those that would find the capital security (under certain events) on the modern plans attractive. As i continue to say, the modern with profits funds are a niche product which can be suitable under the right circumstances. It is not the one solution fits all that it was used as in the past.

EdInvestor

The new regulations on reserving capital for all guarantees will effectively shut down most of the business because the cost of capital is too high, it's simple not profitable. You can see that many funds are already closed to new business and being sold off.

WP is a legacy of the mutual movement, and that is fast disappearing also.Frankly Wp is way too risky for retaIl customers - if people knew they were taking shareholder type risk (with losses as well as with profits) as Equitable members found out, they would never buy WP policies.

The modern plans are more generally a cautious or balanced managed fund with elements of smoothing. Although still not my cup of tea, there are those that would find the capital security (under certain events) on the modern plans attractive.

Yes it's been really noticeable how much 'capital security' there is in WP products over the last few years.Not!

dunstonh

Yes it's been really noticeable how much 'capital security' there is in WP products over the last few years.Not!

If you are going to post rubbish, then you ought to back it. I can produce a number examples of a number of modern with profits plans with capital security on certain events (one is even using the magic "gurantee" word).