Endowment Mortgage Complaints

Discussion in 'Finance, Property, Law' started by Yeo_Man, May 21, 2008.

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  1. Hi

    Clearing up at weekend and came across the old endowment papers (I know, I was young and dumb…..it was my first time!!!!) so finally decided to make a complaint about the advice I was given.

    I would be grateful for any sage words of advice on the way in which others have progressed their complaints? Not that I am suggesting for a minute that anyone else succumbed to the silver tongued mortgage advisor, perhaps you might know someone who has?

    YM
     
  2. Do it quickly - most product providers are trying to get new claims time barred!

    Do it yourself - there are claims handling companies out there who will make your claim on your behalf but they will pocket some of your money for not much work.

    The crux of any claim for mis-selling will be whether or not the "adviser" asked you about your attitude to investment risk - was there any uncertainty about being able to pay off your mortgage at the end of the term? In your complaint letter make it clear that you were never advised of any potential shortfall and that had there been any such possibility you would have gone for a repayment mortgage. (If you were told of a potential shortfall, then any complaint should fail!).

    Send your complaint as soon as possible. Within a week you should have an acknowledgement, within a month an offer or a rejection. If rejected, think about complaining to the Insurance Ombudsman, (the provider should give you a leaflet with all the details).

    Time barring is now a real pain - if this is claimed then it is hard to fight, (unless someone in ArrseLand has some ideas?).

    Here is my letter of a few weeks ago:-

    "My wife and I wish to complain about the above endowment policy that we took out initially to pay off our mortgage.

    Firstly, it is unreasonable for you to impose a 1st May 2008 deadline and to send out the letters on the 27 April 2008. The letter arrived on the 3rd May 2008, so this does not meet the spirit of “Treating Customers Fairly”.

    Secondly, we were not aware that the policy would not meet its target of £16,495, either under its own investment performance or via your Mortgage Endowment Promise. We now see that the “promise” is now severely limited to £1,595 and that the potential shortfall is now more than £3,000.

    Our attitude to investment risk was never discussed. If we had been told there was any uncertainty about the payment of the final sum, we would not have chosen an endowment.

    Please treat this as a formal complaint and I await your acknowledgement and settlement/final management letter.

    Yours faithfully,"

    (I too was once young and foolish).
     
  3. Jeremy

    Thanks for the advice, I have just recieved the forms from the endowment provider and will complete accordingly.

    YM
     
  4. Try the following link all the info you need and an example letter all for free, I have attempted to claim for mine unfortunately the company I bought through in BFG have since folded so not a lot of comeback for me really.

    Which Endowment Action page

    Hope the link helps
     
  5. Even if the original advising agent has gone kaput, there is still an avenue for redress via the FSA. Contact the FSA helpline and start from there.
     
  6. A telling point I made where the form asks if advisor warned you about market risks. If you say yes, they will say 'told you so' Thing is to say that their agent added that he had to say this by law but you did not need to worry as the Bank was very well organised and all sorts of measures to ensure there was no market risk. Also, if their excuse is under-performance, check on the annual forecast letters whether they warned you of this so that you could have made changes.
    Hit them if they do not do exactly what they say they will. Mine wrote that they would be in touch wthin 14 days. They did not. I wrote personally ddresed to the top three bosses saying that if they could not get the basics right, I did not see how they could sort out the mortgage problem. I was then given my own personal contact at bank HO.
    Do not abuse; OK to be direct where something went wrong but do not use "Your mong got this up his arse" phrases.
    Hard work but I was faced with shortfall of 8 grand and got every penny paid.
     
  7. A quick thanks to all for the advice provided, it has proved very effective.

    Not only have I received an offer of compensation, but also an offer to redeem the endowment for a reasonable amount.

    Just need to decide which is the best option and where to invest the money if I redeem the endowment.

    YM
     
  8. I got all the forms from moneysavingexpert.com and managed to get back a couple of thousand quid from both Scottish Widows and Abbey Natonal. Result!