Wrongfully Sold Endowments

A large number of endowments were originally sold to people who were not properly informed about the possibilities of a shortfall. As a result, throughout the UK, thousands of policyholders face the anxiety of not knowing for sure whether the payout they will receive by the end of their endowment will actually be enough to cover the rest of their mortgage payments.

While risk is a factor that applies to all forms of investment, a provider that neglects to give the right information to their buyer may be held liable for wrongfully selling the endowment. In such cases, the policyholder may be entitled to compensation.

For more information about recompense for wrongfully sold endowments, contact the following organisations:

/ The Financial Ombudsman Service
South Quay Plaza
183 Marsh Wall
London E14 9SR
Telephone: 0845 080 1800
Fax: (020) 7964 1001
Website: http://www.financial-ombudsman.org.uk/

/ The Financial Services Authority
25 The North Colonnade
Canary Wharf
London E14 5HS
Telephone: (020) 7066 1000
Helpline: 0845 606 1234
Fax: (020) 7066 1099
Website: http://www.fsa.gov.uk/

Also, make sure to consult the independent Financial Services Authority’s fact sheet on endowment mortgages, found online at: http://www.fsa.gov.uk/consumer/. The information there can assist you with your claim against your endowment provider.

Keep in mind that you cannot sell your policy until all claims have been settled. If you feel that you have grounds for your claim, continue making payments throughout the complaints proceedings. Your claims may be declared null and void if you fail to keep up with your current payments.

Before lodging a formal complaint with the Ombudsman, talk to your provider and try to get your questions answered first. Read and review all the documents that came with your policy. For any clarifications, get in touch with either the FSA or the FOS for advice.