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Endowment mortgage - compensation companies

(6 Posts)
Feenie Thu 21-Aug-08 18:24:10

I've just been contacted by one of these companies about an endowment mortgage they reckon I was probably mis-sold in 1994. I cashed it in in 2001, but the guy said I could conceivably win about £2000-3000. He said I could claim on my own, but that the individual success rate is 30% and his company's is 90%. Of course, the snag is that they receive 35% commission (on a no win, no fee basis) and admin fees, taking their fee to around 40%.

Has anyone else successfully claimed on their own, or knows of these kind of companies please?

Jas Thu 21-Aug-08 18:27:54

I claimed and got a payout. It wasn't difficult, and I'd be surprised if the 30% bit was true.

I think that you can claim, and if unsuccesful may still be able to go through a claim company then.

If they lose you would still pay the admin fees, too.

Jas Thu 21-Aug-08 18:30:35

Read all this.

Good luck if you do make a claimsmile

Feenie Thu 21-Aug-08 18:57:23

Thanks for that Jas. I wouldn't have to pay the admin fees, I checked on that. Undecided what to do really, that site made very interesting reading but I only have the scantest of details from that mortgage (but do have the policy number).
This bit was enlightening, also:

'The Financial Ombudsman Service has confirmed that using a complaints handler doesn’t give you any more chance of success than if you took the DIY option'

mumthatworks Thu 04-Sep-08 15:42:20

Hi...I used to actually do this as a job a few years ago (dealing with endowment complaints on behalf of banks and endowment complaint companies)....you have no more chance going through one of these companies than if you did it yourself. The only difference is they normally have a standard complaint letter they send out which might help you but definitely dont use one. If you go onto moneysavingexpert.com or the financial ombudsman service website you will find a standard template to help you write your endowment complaint letter.

Whatever happens you should always contact your endowment company first and keep a copy of the letter and if you dont receive compensation within 8 weeks then send a copy of the letter to the Financial Ombudsman Service and get them to chase it up for you...sometimes the process can take one or two years but I would tell everyone with an endowment to try it...its definitely worth the stamp and definitely dont go through one of these companies.

xxx

mumoverseas Thu 04-Sep-08 16:43:40

I was contacted by one of these companys around 2 years ago and initially ignored their correspondance as I simply couldn't be bothered. Eventually I decided I had nothing to lose so filled in their paperwork and sent it off. About 3 to 4 months later I received a cheque for I think just under 8,000. I had to pay them around 1,500 'commission' but to be honest, it was money I'd never have got otherwise. My endowment with L & G had been cashed in a few years before so it was a bonus!
Think the company I used was called EPA.
Good luck.

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