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Original poster

Endowment compensation !!!!

23 replies

jampot · 04/06/2004 19:21

Today we received a cheque for 3.5k from our endowment provider after I had complained about a mis-sale!!!! Yippee!!!!!

OP posts:
Piffleoffagus · 04/06/2004 19:27

I got 4k from mine too...!!!!!!
Celebrate... oh arse no one here....

jmg1 · 04/06/2004 19:28

Well done you two, did you complain to the FSA or the Endowment Company, what did you say?

Original poster
jampot · 04/06/2004 19:54

well I said that we were financially cautious as is evident from our mortgage/credit history and that we were led to believe that the endowment company tended to err on the side of the caution and in fact the figures quoted for maturity of our plan were very conservative and in fact we would most likely have a larger surplus than the one illustrated. After 10 years of paying in we are currently looking at a 20k shortfall. our endowment company (whose name has a bird of prey in it) have also offered to settle any tax liability incurred upon cashing in the policy. Brill company, crap agents!

OP posts:
Piffleoffagus · 04/06/2004 20:02

oddly they wrote to me initially, saying that had I been misrepresented at start up. It turned out I paid a lot over the odds needlessly... I thought they were being weird at first re compensation, but as I had worked for Insurance Co. during Pensions Review, I sat tight and voila...
Its been invested for kids thus....

workout · 04/06/2004 21:18

We had something similar after I complained to the company about how it was sold to us. It was never mentioned to us that the endowment would miss its target!! Does anyone know if you are liable to tax on the amount that you receive?? (Sorry for that!!)

robinw · 05/06/2004 06:40

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Original poster
jampot · 05/06/2004 09:55

i think ES meant if we cashed in the endowment plan they would pay the tax liability on the money received from that.. although I didn't realise there was any tax liability

OP posts:
Demented · 05/06/2004 10:13

Jampot and Piffleoffagus, when were your endowments taken out? We have an endowment taken out in 1998 and DH is under the impression that we are time-barred to claim, but if your endowments were taken out in 1998 or after then maybe he is wrong.

Original poster
jampot · 05/06/2004 10:21

We took ours out in '94 - there may be a time limit from when the company first informed you there is a likely shortfall at maturity. It's certainly worth ringing your endowment company and asking them to send you a complaint form (quicker to call than send letter in first instance). Good luck

OP posts:
Piffleoffagus · 05/06/2004 11:36

mine was 98...

Piffleoffagus · 05/06/2004 11:36

got a letter from them in 2001....

Demented · 05/06/2004 19:24

Thanks both of you, I don't think we've got a huge shortfall (about £4,000 as it is only a small endowment) so we probably wouldn't but due a large amount, but they did only inform us of that recently and it's worth a try. Thanks for the tip about ringing rather than writing Jampot, will get on to that on Monday.

Gomez · 05/06/2004 19:34

Demented, the FSA rule on complaing re: endowmments are slightly different from normal :

(1) You have 3 years from when you should have first become aware that you had cause to complain. This is generally taken to be when you first received a 'red' warning letter.

BUT for endow complaints you also have an additional six months from any second letter you received.

So for example if you received a 'red' warning letter in June 2000 and then a second in June 2003 your right to complain would now be time-barred. But if you received an inital letter in Jan 2001 and a second in Jan 2004 you could still (just) complain. Your endowment company may not have left three years in between letters however in which case the current intrepretation is that you would only get the 3 years.

BTW a 'red' letter would have indicated that there was a very high liklihood of a shortfall on your endowment and would have shown various projections (probably at 4%, 6% and 8% growth)to illustrate what that shouldfall could be.

Hope that helps and please feel free to come back if I haven't made that very clear. (Hopefully I won't be around to answer it thou as I am currently 40+ weeks pregnant.)

robinw · 06/06/2004 08:55

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Demented · 06/06/2004 22:47

Thanks Gomez and Robinw, that's really helpful. Will get DH on to it at the start of the week (these sort of things are 'his department' ). Hope you're not around to read this Gomez, hope you have your new baby in your arms as I type.

Galaxy · 07/06/2004 12:00

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Original poster
jampot · 07/06/2004 12:05

Galaxy - who did you complain to. ES made their own enquiries of our b/s who arranged the endowment so surely this should be the norm.

OP posts:
poppyseed · 07/06/2004 12:28

We complained directly to the company that we had the policy with. They made their own enquiries on our behalf with the IFA that we had at the time. We took the policy out in 1993 and had no paperwork to speak of either. We received compensation of £4k on a £48k policy. I would investigate further.......

Galaxy · 07/06/2004 12:39

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willow2 · 08/06/2004 10:40

This thread has encouraged me to write to the company that arrange our endowment - unfortunately just before April 88. Apparently, they can voluntarily investigate, and have been emailed to say that their compliance manager will look at it. Doubt I'll get anything back but has to be worth a try.

Original poster
jampot · 08/06/2004 10:43

Dont forget "The noisy wheel gets oiled" - keep on at them - it worked for Nutty and her house!!

OP posts:
robinw · 10/06/2004 09:31

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bobs · 17/06/2004 22:51

Galaxy - have a look at this website for info:
www.endowmentjustice.com/faq.asp.
I've just started the ball rolling on mine and have been trawling the net for info on doing it right

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