Endowment Compensation - How do you know if you have grounds to make a claim?

*Please note* This site is for information purposes only - we are not accepting any new cases from January 2007

This generally is an easy question to answer. You need to establish a few key points about the selling of the actual policy when it was first taken out. This then enables you to determine whether there is a valid claim for endowment compensation against the provider or seller of the property endowment policy.

Please also read our key questions page - click here

Sufficient grounds

Firstly please be aware that your complaint is not about the performance of your individual endowment policy - but instead about the advice you received when you purchased the product.

The situation for most people is that the whole concept of risk combined with the fragility of endowment products generally, was not properly communicated at the time when these policies where at there most popular during the 80's & 90's. One very important question is whether the endowment adviser made sure that this type of product was the best method for you to repay your mortgage.

This question should be dealt with by addressing two important factors:

1. Your financial circumstances at the time
2. Your attitude to risk

You may have grounds for complaint if:

• Your financial advisor did not explain how your money (monthly premium  payments) would be invested and what risks involved with such an investment.
• Your advisor did not explain the fact that these products are long term and often give a poor return if you cash them in early.
• Your attitude to risk was not properly vetted and that you were not fully aware of the risks associated with this form of investment.
• This is a major issue and should always be considered when presenting a complaint.
• The advisor did not check that you were fully able to keep up the payments until the end of the relevant period (usually 25 years).
• The advisor did not fully explain what fees would be payable during the life of the policy and how these deductions would affect the return on your savings.
•  You were sold the policy on the understanding that it would definitely pay off the mortgage and provide a surplus, but instead it is forecast to fall short.
• You were single and did not require the life assurance element of the endowment and the salesman failed to make it clear you were paying for life assurance or you already had sufficient life-cover for your property mortgage and did not require more.
• The endowment matures after your retirement date and the salesman failed to make this clear to you or told you that the policy would be worth enough at retirement to pay off your mortgage. Or if the salesman failed to conduct a proper fact find to discover whether you would have sufficient income in retirement to meet the mortgage and endowment payments.
• The salesman persuaded you to cash in one endowment and take out another.

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:  

• How compensation is calculated
• Endowment related news and press releases
• Endowment complaints - articles
• Common problems or complex claims
• Complaints about "retirement" mis-selling.

We also offer Payment Protection Insurance (PPI) mis-selling complaints information:

• PPI claim solicitors
• What you should know about PPI claims
• How to make a PPI claim
• Large loan PPI claims
• PPI calculator
• PPI FAQs
• PPI history flowchart
• About our PPI claims service

Claim back Payment Protection Insurance (PPI) that was missold:

We offer a Leeds based Notary service.

We also have a team of specialist Insolvency lawyers providing bankruptcy legal advice.

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