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*PLEASE NOTE* This site is
for information purposes only - we are not accepting
any new cases from January 2007
If you have received a warning letter concerning a
possible shortfall on your endowment mortgage - you must
act now to educate yourself on the important issues
involved or make a formal complaint.
Please also read our page regarding key complaint
issues - click here
There are different types of warning letters that may
be sent to you by your endowment provider. Not all
warnings will necessitate immediate action. However,
you should seek advice on your position from an
independent financial adviser OR speak directly to the
endowment provider/company.
Here are examples of the different types of letter
you may receive from your endowment company:
A green letter
indicates that the fund is on track at
the present time to meet the target amount. However
there is still no guarantee that the mortgage amount
will be met in full. The status of the endowment
investment will be subject change constantly.
An amber letter
indicates that there is significant risk that the
investment will not pay off the mortgage loan. The
letter is intended to deliver a message that you should
monitor the progress of the fund closely. You may not
have a direct entitlement to claim compensation at this
point.
A red letter
confirms that there is a "high risk" of a
shortfall and that the target amount set at the time of
taking out the mortgage (usually the loan amount) may
not in fact be met. It is advisable to lodge a complaint
immediately in such circumstances.
NOTE: An insurer that uses the term
"significant risk" rather than high risk, may not be
able to rely upon the communication if they argue that
the colour code or message conveyed was that of a RED
warning. This could be important when considering time
barring disputes.
How long do you have to make your complaint?
You are generally allowed three years from the date
of receiving the first red warning letter. It may in
certain circumstances, be possible to extend this
period. Some insurers will rely upon "old" letters
that pre-date the colour coded system above in order to
reject claims using the 3 year rule.
Read more about endowments and real life case studies
on the official FOS site -
Financial Ombudsmans official site. There are a few
interesting sites below where you can find out more
about endowment complaints:
Financial Ombudsmans official site -
Consumer
information from the FSA -
Building Societies
Association
Or read our additional pages here:
Grounds for complaint (more detail) -
Endowment claim advice uk -
News
Specialist - claims handlers -
Procedures -
What happens when you complain
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