Missold Endowment Policy

[scoobster999]

Hi, hope someone can potentially help with some advice?

I have an endowment due to mature in the next couple of years. I have been receiving letters warning of a shortfall, however this isn't my main gripe.

The company in question have already admitted that I have been missold the policy and have made an offer of compensation, however I feel that the calculation used in the figure doesn't apply in my case. The reasoning behind this is that the calculation used is there to reflect the difference between a straight repayment mortgage and an interest only with the policy, however in my case the product was intended as an investment vehicle for the long term. It was explained that as the juncture that the policy was invoked I was single, no dependants, living at home with parents. My priority was long terms capital growth and therefore didn't need life assurance or any of the other "add in's" associated with an endowment.

My thoughts are that I would have been better advised to go with an ISA, savings plan or similar and that the recommendation of an endowment was totally the wrong product in the first instance. Is there a way of comparing a straight savings/investment product with an endowment yield to see how the final figures will have compared based on a regular payment? At the ripe old age of 22 I was relying on the advice of the agent to understand my needs and goals and advise accordingly, not to suggest the product that made him the most commission.

Any advice?

Scoob

[Ginge R]

Scoob,

Do you have - or have you had, any letter or report to support the course of action?

[scoobster999]

Hi Ginge,

Yes I have a letter admitting I was sold the wrong product and making an offer based on a "standard calculation".

Scoob

[Ginge R]

This might help then, from the horse's marf - the Ombudsman's guidance. In itself, being single is not an indication of mis-selling a life insurance product although it would certainly raise greater interest with a compliancy dept because the *potential* for mis-selling is higher - I can think of many instances when it might be appropriate. But the reasoning has to be evidenced.

http://www.financial-ombudsman.org.uk/publications...

http://www.financial-ombudsman.org.uk/publications...

http://www.financial-ombudsman.org.uk/publications...

http://www.financial-ombudsman.org.uk/publications...

[Old Merc]

I had a similar miss selling case..All I did was follow advice from my financial adviser,no fee as I`ve known her for years.I had a pension mortgage (similar idea to an endowment mortgage)with a top high st bank.A very long story but I made a complaint,loads of questionnaires sent to me,stuck with it (they try to make you give up)it went on for six months and I ended up with a MASSIVE compensation payment about four times more than I was expecting.
This opened my eyes as to what must be going on out there with banks,they have been ripping us off for years.I think they must have some sort of procedure to follow with these cases,but they wont let on!!,try to get you off their backs,drag it on and try to make you give up.
Just how many people out there are unaware that they where miss sold and are due huge payments??

[Jockman]

scoobster999 said:

The company in question have already admitted that I have been missold the policy and have made an offer of compensation, however I feel that the calculation used in the figure doesn't apply in my case. The reasoning behind this is that the calculation used is there to reflect the difference between a straight repayment mortgage and an interest only with the policy...

Scoob

My experience in this area is that this is all they are required to do. Essentially, they must reinstate you to a repayment position which seems the only logical way of doing it. I mean if you had used the money instead for an ISA in Technology Funds in the late 1990s or Property Funds in 2007 they would be making no payment to you anyway !!

Take it to the Ombudsman and let them confirm or adjust the figure, Scoob.