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
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Mr R Evans 11 Nov 2010