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Endowment Mis-selling Question
Sinbad
Posts: 110 Forumite
I have five endowment policies currently with Winterthur. They were originally purchased through Colonial Mutual, before they were taken over.
2-3 years ago, I went through the complaints process (on the basis I was mis-sold) but my complaint was thrown out.
During the summer, they wrote to me basically asking if I would like to have another stab at asking them!
This time I had some success: my complaint was upheld against three of the policies – and that is where all this is leading to!
Their letter states that:
“This review only relates to mortgage-related endowment policies sold before 29 April 1988 and our calculations only take into account any policies taken out before this date.
Although you have included policies for review taken out after this date, we have not reviewed our original decision and included these policies in our redress calculations”
My issue is that the advice I was given when taking out these policies was the same on each occasion; it was actually with the same salesman each time! How can they get out of any redress for policies taken out after this April 1988 date?
Is there anywhere I can go with this?
Thanks
2-3 years ago, I went through the complaints process (on the basis I was mis-sold) but my complaint was thrown out.
During the summer, they wrote to me basically asking if I would like to have another stab at asking them!
This time I had some success: my complaint was upheld against three of the policies – and that is where all this is leading to!
Their letter states that:
“This review only relates to mortgage-related endowment policies sold before 29 April 1988 and our calculations only take into account any policies taken out before this date.
Although you have included policies for review taken out after this date, we have not reviewed our original decision and included these policies in our redress calculations”
My issue is that the advice I was given when taking out these policies was the same on each occasion; it was actually with the same salesman each time! How can they get out of any redress for policies taken out after this April 1988 date?
Is there anywhere I can go with this?
Thanks
0
Comments
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How can they get out of any redress for policies taken out after this April 1988 date?
29th April 1988 is when regulation came in. Anything before that doesnt have to be considered as its pre regulation.
It would be like prosecuting a smoker now who smoked in a pub 5 years ago. It may be against the law now but wasnt then. The endowments sold before 29th April 1988 didnt have the same rules and protections of those sold after that date.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
The OP was saying that it was only the pre regulation cases they were looking at
AFAIK most of the larger companies will look at these cases even though it was sold before the Financial Services Act came into force.
It sounds like they are reviewing previous pre A day (pre April 88) cases. Its possible it had been identified that they hadn't been handled correctly in the past. This review could be following an internal compliance review, or a large number of the cases being overturned at FOS appeal stage, for example.
As for anything you can do now about the later policies they hadn't reviewed? It is doubtful. You would have had 6 months to go to FOS from the time the original decision letter was issued. If it is more than that then I don't think there is a lot you can do.0 -
good spot on the "pre". I answered on the basis of "post". I must have seen the date and jumped right in. sorry.
Companies normally go back and review cases where an issue has been identified. i.e. found to have wrongly rejected cases previously in certain circumstances or a certain staff member was found do be doing things wrong so they review all their past cases.
In this case, it appears that they have taken the decision to review pre 1988 cases and that is the limit of the review. Just as turbobob says, you have 6 months to go to the FOS if you disagree with the outcome and if that 6 months has now passed, then you cannot do much about it unless the company decide to take on a review of your cases voluntarily.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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