The Financial Ombudsman Service (FOS) is reporting a fall of 44 per cent in the number of mortgage endowment complaints in it’s Annual Review. For the first time since the Service was set up mortgage endowments aren’t the most complained about investment, although they still receive large number of cases. (more…)
Some have described the £1.5b compensation payout for Equitable Life Policyholders as a victory, however the truth is many policyholders will be left with major losses. (more…)
There are warnings from financial advisers that a letter sent by Scottish Life to clients with maturing endowments could lead to endowment claims. The letter explains that Scottish Life is investigating with-profits endowments sold between 1988 and 1995 due to the methods used by advisers to calculate rates.
The letter asks client for a copy of the original illustration of possible policy maturity values provided by their financial adviser “to assist in our investigation of the premium calculation basis adopted by advisers.”
Although the letter appears to suggest there may be room for clients to investigate the possibility of a complaint, Scottish Life were quick to clarify the reason for the letter. A spokesman explained they were trying to identify liabilities arising from allowing endowments to be sold using misleading LAUTRO rates, adding that no responsibility would lie with advisers.
Problems with LAUTRO rates of return quoted prior to 1995 have arisen before although these often concerned issues of charges not included in the LAUTRO rates provided.
The Financial Services Compensation Scheme (FSCS) is reminding consumers they can claim up to £48,000 if they have lost money from any of 27 investment firms recently declared in default. The scheme offers a free service to customers of authorised financial services firms. (more…)
A new survey has revealed that most people with a mortgage endowment policy believe it was mis-sold. While 87 percent of the respondents felt they were duped when they originally took out the policy, only 10 percent felt that they were made aware of the risks. (more…)
Mortgage endowment claims are still the biggest source of new claims for Financial Services Compensation Scheme (FSCS). According to it’s latest report there were 7,410 new claims during the financial year. (more…)
A recent article in Timesonline claims that savers with endowments pensions and bonds may have been ripped off to the tune of £8 billion this year. (more…)
Prudential has announced welcome news for its endowment mortgage customers who are dependent on endowment policies to pay off their mortgage this year. Other customers will also benefit as, for the first time in 18 years, there will be increased annual bonuses paid to with-profit policyholders. (more…)