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Hello,

 

I need some advice before I decide to proceed with this one.

 

In 1994, I bought my first house, I was a bit ignorant to the ways of Mortgages etc, so I sought the help of a Mortgage advisor(freelance).

 

He did discuss all sorts of Mortgages, but told me that an endowment would pay off the Mortgage at the end of the term and give me a cash sum as well. About £80,000 which would pay of the mortgage and leave me with £20,000. The term of the policy was 20yrs. Well of course what would you have done. I signed up for it and that was that. Risks were never mentioned by the FA or the Company.

 

I paid £154 a month for the next 10yrs. I had heard talk of shortfalls, but the company wrote to me giving me good predicitions. After a few months they wrote to me informing me that there was going to be a shortfall on the endowment and to seek advise.

 

Im sorry I panicked and surrendered the policy and took out a repayment mortgage with another company. The surrender value of the endowment policy was £17,000. This amount sounds a lot, but I had to remortgage the whole amount of the house, but over 12yrs term because of my age

 

If there any thing I can do with this.

 

I have sent a SAR and received some info

If any of my posts are helpful, please feel free to click my scales. All information is given as my opinion only, based on my own personal experiences. I have no legal training, but have educated myself in aspects of consumer legislation. My motto "NEVER GIVE IN, NEVER SURRENDER", THERE IS A WAR ON YOU KNOW

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Was the Adviser Independent or a Company representative?

 

If he was a Company Rep, the company having signed off the case by it's adviser accepts responsibility and that's who you should complain to.

 

If he was Independent, you need to go through his Company.

 

I believe the onus is on the adviser/company to prove that risks were explained. Did the adviser "Guarantee" a surplus lump sum of say it was possible?

 

Sorry but I don't know what an SAR is.

 

When you surrendered the policy did you deduct that amount from the amount you remortgaged for?

 

Otherthings that have an effect is what would have been the difference in cost between an Endowment Mortgage and a Repayment Mortgage. The fact you've also had life cover with your endowment for the 10years will be taken into account as this would have been a separate cost with a Rep mortgage.

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Was the Adviser Independent or a Company representative?

 

If he was a Company Rep, the company having signed off the case by it's adviser accepts responsibility and that's who you should complain to.

 

If he was Independent, you need to go through his Company.

 

I believe the onus is on the adviser/company to prove that risks were explained. Did the adviser "Guarantee" a surplus lump sum of say it was possible?

 

Sorry but I don't know what an SAR is.

 

When you surrendered the policy did you deduct that amount from the amount you remortgaged for?

 

Otherthings that have an effect is what would have been the difference in cost between an Endowment Mortgage and a Repayment Mortgage. The fact you've also had life cover with your endowment for the 10years will be taken into account as this would have been a separate cost with a Rep mortgage.

 

Hello,

 

thanks for your reply

 

A SAR is a Subject Access Request which costs £10 and under the Data Protection Act they have to supply your with all information regarding any business that you have had with them,

 

When I took out the Endowment policy it was in fact as I am aware he was an independent FA paid commission for selling policies. I also think that he took a percentage of the payments in the first year.

 

What I have seen it appears at bit dodgy. Looking at the application form for details of my GP. He has written a Dr Close, Address the local hospital. That is not true and does not make sense.

 

Also when I received the surrendered amount I use it to pay off a couple of loans and a credit card.

If any of my posts are helpful, please feel free to click my scales. All information is given as my opinion only, based on my own personal experiences. I have no legal training, but have educated myself in aspects of consumer legislation. My motto "NEVER GIVE IN, NEVER SURRENDER", THERE IS A WAR ON YOU KNOW

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Hello,

 

thanks for your reply

 

A SAR is a Subject Access Request which costs £10 and under the Data Protection Act they have to supply your with all information regarding any business that you have had with them,

 

When I took out the Endowment policy it was in fact as I am aware he was an independent FA paid commission for selling policies. I also think that he took a percentage of the payments in the first year.

 

What I have seen it appears at bit dodgy. Looking at the application form for details of my GP. He has written a Dr Close, Address the local hospital. That is not true and does not make sense.

 

Also when I received the surrendered amount I use it to pay off a couple of loans and a credit card.

 

Can you still track down the adviser ot the company he worked for?

 

I'd get onto the Company he represented or the network he was part of. Try checking the FSA website and search the register to see if you can track him down. if the worst comes to the worst phone the FSA and ask them what you should do.

 

FSA Register

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Thanks for the heads up on an SAR btw

 

Thanks so much crayzee for your advise, I have looked on the fsa website for his company but it was not there,:-?

If any of my posts are helpful, please feel free to click my scales. All information is given as my opinion only, based on my own personal experiences. I have no legal training, but have educated myself in aspects of consumer legislation. My motto "NEVER GIVE IN, NEVER SURRENDER", THERE IS A WAR ON YOU KNOW

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If you can't find the adviser, then just take it up with the insurance company concerned.

 

Will do

 

Many thanks

If any of my posts are helpful, please feel free to click my scales. All information is given as my opinion only, based on my own personal experiences. I have no legal training, but have educated myself in aspects of consumer legislation. My motto "NEVER GIVE IN, NEVER SURRENDER", THERE IS A WAR ON YOU KNOW

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I work for a life assurance company and used to deal with endowment complaints.

 

Couple of things, the adviser if independent may have been working for a large organisation, some of them have so called independents but they work under their umbrella group. Also some LA companies have so called tied agents who can only sell their products. If you cant trace the adviser or his company then you can contact the Financial Services Compensation Scheme. They are a government backed organisation for people who have been stung and then their financial adviser went bankrupt or whatever.

 

I would say that you have a justifiable endowment complaint however as a couple of things, the investment market was already changing on endowments in 1994, and although the real rot set in after september 11th there was still a downturn in the bonuses applied to plans compared to what there would have been in the eighties, and the adviser should have made you aware of this and not give you unrealistic expectations. I assume the £80,000 would have been shown on an illustrated maturity value.

 

With endowment complaints the customer has 3 years from their first notification of a "red letter" /significant risk of a shortfall to complain. This is under the juristiction of the FSA, who can force the adviser to pay recompense. If its outwith the 3 years the customer can still make a complaint however the FSA cannot intervene if the financial adviser does nothing. Some companies have applied to have the 3 year ruling put on any of their business they dealt with, some dont. Also an SAR will give you all the details held on your file, but you would need specific stuff that would have to be calculated etc before the information provided by the company would be any help. FIrst one i might suggest is ask them for a hypothetical value had the plan continued. (this is a total nitemare of a calculation, but it can be done and its being done certainly by our company for loads of financial adviser companies and large banks/building societies right now, so why should they get preferential treatment!!!

 

Just a point to note, in checking for a misselling complaint,if it was upheld and investigated you would not automatically receive the rest of the monies that were missing under the original policy. There is a calculation done based on how much worse off you were having gone down the endowment route rather than a repayment mortgage. And if you are found to have been worse off getting an endowment then you are paid compensation but only on the difference between the two figures.

 

Hope that helps. If you want to know any more just holler x

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I work for a life assurance company and used to deal with endowment complaints.

 

Couple of things, the adviser if independent may have been working for a large organisation, some of them have so called independents but they work under their umbrella group. Also some LA companies have so called tied agents who can only sell their products. If you cant trace the adviser or his company then you can contact the Financial Services Compensation Scheme. They are a government backed organisation for people who have been stung and then their financial adviser went bankrupt or whatever.

 

I would say that you have a justifiable endowment complaint however as a couple of things, the investment market was already changing on endowments in 1994, and although the real rot set in after september 11th there was still a downturn in the bonuses applied to plans compared to what there would have been in the eighties, and the adviser should have made you aware of this and not give you unrealistic expectations. I assume the £80,000 would have been shown on an illustrated maturity value.

 

With endowment complaints the customer has 3 years from their first notification of a "red letter" /significant risk of a shortfall to complain. This is under the juristiction of the FSA, who can force the adviser to pay recompense. If its outwith the 3 years the customer can still make a complaint however the FSA cannot intervene if the financial adviser does nothing. Some companies have applied to have the 3 year ruling put on any of their business they dealt with, some dont. Also an SAR will give you all the details held on your file, but you would need specific stuff that would have to be calculated etc before the information provided by the company would be any help. FIrst one i might suggest is ask them for a hypothetical value had the plan continued. (this is a total nitemare of a calculation, but it can be done and its being done certainly by our company for loads of financial adviser companies and large banks/building societies right now, so why should they get preferential treatment!!!

 

Just a point to note, in checking for a misselling complaint,if it was upheld and investigated you would not automatically receive the rest of the monies that were missing under the original policy. There is a calculation done based on how much worse off you were having gone down the endowment route rather than a repayment mortgage. And if you are found to have been worse off getting an endowment then you are paid compensation but only on the difference between the two figures.

 

Hope that helps. If you want to know any more just holler x

 

Woww thanks so much, I feel I may not get anywhere with this, but it has given me confidence and It is worth the price of recorded deilivery letter.

 

Thanks for the offer of help it is much appreciated

If any of my posts are helpful, please feel free to click my scales. All information is given as my opinion only, based on my own personal experiences. I have no legal training, but have educated myself in aspects of consumer legislation. My motto "NEVER GIVE IN, NEVER SURRENDER", THERE IS A WAR ON YOU KNOW

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Woww thanks so much, I feel I may not get anywhere with this, but it has given me confidence and It is worth the price of recorded deilivery letter.

 

Thanks for the offer of help it is much appreciated

 

 

Your very welcome. The way I see it is that if you have been given wrong advice, which a hell of a lot of people were then you SHOULD get something for it. Like I said before, if you need a hand give me a shout.

 

Sheila x

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