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How to make a mis-sold endowment complaint

Follow these simple steps to get your endowment compensation

1. First of all you have to complain to the company that sold you the policy i.e. whoever the sales adviser was working for. Financial companies should have a complaints process and you need to exhaust this before taking your complaint to the authorities.

2. It is important to get across to the company exactly what you want and why. Put your case in writing and explain as clearly as possible why you feel that the endowment policy was mis-sold. Quote any policy numbers or reference numbers that you have, list events in date order, and enclose photocopies of all documents relevant to the policy and any other evidence you may have.

State that if it were not for the bad advice you were given, or the lack of advice, then you would not have purchased the policy. Say that you wish to be compensated and be put back into the position you would have been in had you taken out a repayment mortgage instead.

3. The company is required to respond to you within eight weeks (it should inform you if they think it may take longer). If they uphold your complaint they will offer you compensation based on Financial Services Authority guidelines and won't be for the shortfall you suffered.

4. If you are not satisfied with the company's response, or if they have not responded at all after eight weeks, then you may take the complaint to the Financial Ombudsman Service (FOS). The FOS will assess your case independently for free and you can find their process on their website.

5. If you are still not happy after all this then it is possible to take your complaint to the courts. If your claim is for less than £5000 then please see our guide to the small claims court for more information. It is highly recommended that you consult your local Citizens' Advice Bureau or a solicitor before taking court action however.

The 1988 rule

If you took out your endowment through a financial adviser before 29 April 1988 you may be caught in a black hole because there was no regulatory protection. However people sold endowments by banks, building societies or insurance company salesmen before then can still complain, although some will try to fob you off. The FOS can tell you if your firm is covered.

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