Endowment Mis-selling Compensation
| Of the millions of endowment mortgages sold during the 1980s and 1990s, it is thought that as many as 60% of them could have been mis-sold through inappropriate financial advice. In some cases, some financial advisers may even have sold these policies due to the high levels of commission they would receive compared with repayment mortgages, rather than with the best interests of their client in mind. The scale of the problem is enormous and can be financially disastrous for some individuals although much has been done to address the issue. It may be that many people who were given bad advice and have suffered financially as a result could be entitled to compensation. |
In order to be eligible for compensation, it must be shown that either the policy was inappropriate for the client's circumstances when it was sold; or that at the time, the client did not understand the product or the risks associated with the potential levels of return. If the client has lost out as a result of the advice given, there is a good chance that compensation could be paid. The amount of compensation would be calculated by looking at the performance of the policy compared with that of a repayment mortgage during the same period of time.
The first thing to do is to approach the company who sold the policy and make a complaint. This must be done within 3 years of the first 'red letter' of warning issued by the policy provider. It is therefore very important to make sure any approach is made as soon as possible. If the insurance company does not uphold the complaint, the matter can then be taken up with the Financial Services Ombudsman. Even if the company that sold the policy has gone out of business, compensation may still be available through the Financial Services Compensation Scheme.
If you would like any help or advice about the best course of action to take in your circumstances, please complete a Mortgage Enquiry Form below and we will arrange for one of our specialist mortgage advisers to contact you. Alternatively, you can call us on 0845 108 0505.
