Share this article:
Tell a Friend

Were you mis-sold your endowment policy?

Below are some of the central arguments that will need to apply if you are to claim that endowment mis-selling occurred.

1. The salesman made you believe that the policy would definitely pay off the mortgage and provide a surplus, but it instead it fell short or is forecast to fall short.

2. The salesman failed to assess your suitability for the policy. This can include:

  • Not discussing other mortgage repayment options with you.
  • Not explaining to you the risk involved in stock-based investments and that how much you get back would depend on the performance of the policy.
  • Not explaining that the policy is a long-term commitment and that early payment would result in a poor return.
  • Not checking if you were comfortable with a risk-based policy or not.

3. The sale of the endowment did not follow the regulations. For example:

  • The salesman didn't explain any fees and charges and how they affect the return you get on your savings. Depending on when you took out the policy you should have been provided with either product particulars including charges and cash-in values, or a key features document detailing fees and charges.
  • The salesman failed to carry out a fact find during the sales process.

4. The salesman didn't discuss with you what would happen if the endowment was due to mature after your retirement date, or he failed to check whether your retirement income would be sufficient to cover repayments.

5. You were single or already had life-cover, so did not require the life assurance element of the endowment.

6. You already had an endowment policy but the salesman persuaded you to cash it in and take out another. Such practice is against FSA regulations.

If any of the above applies to you then please continue to the next section of the guide to see how to make a complaint and ask for endowment compensation.

Claims Financial

Why use our service?

family grass smallTick No Win, No Fee *
Tick No Upfront Fees
Tick Professional Friendly Service
Tick Experts in financial claims
Tick Regulated by the Ministry of Justice

Start your claim

Testimonial

"I just had to put pen to paper and write to say I'm more than delighted with my settlement that you won me back from my PPI I had with Lloyds TSB. The Claim Forms were simple to fill in. It was a breeze"

Mr R Evans 11 Nov 2010