ENDOWMENT MORTGAGE
LETTER OF COMPLAINT

The first step in claiming compensation is to take professional endowment advice from a specialist following receipt of a red re-projection letter and to write an endowment mortgage letter of complaint to the seller of the policy which is usually an insurance broker or a life company and in some situations it can be a solicitor. The recipient of the endowment complaint letter must acknowledge receipt and consider whether or not there is a shortfall caused as a result of incorrect or inadequate information being given to the policy holder at the time the policy was sold. If the seller refuses to pay compensation or the compensation offered is considered to be inadequate then the matter is referred for re-consideration to the Financial Ombudsman Service whose decision is binding on the seller. In the event of the seller of the policy being no longer in existence or bankrupt then an application for damages can, in some circumstances, be made to the fund of last resort administered by the Financial Compensation Fund Scheme.

Time limits do apply and most insurance companies insist, in accordance with the Financial Services Authority rules, that a formal endowment mortgage letter of complaint is received within three years of receipt of the first ‘red letter’ warning of a mortgage shortfall. Some companies will extend the three year limitation period however in most cases missing the deadline will ensure that the opportunity to claim compensation is lost forever. Professional endowment advice should be taken urgently if you are in any doubt about the time limits.

The endowment mortgage letter of complaint is an important and valuable document and it is to the applicants advantage both in terms of proving liability and obtaining damages expediently to ensure that the letter contains sufficient information to identify the policy together with both the buyer and the seller and also contains detailed and verifiable allegations of the facts to be relied on to prove mis selling. The initial letter need not contain any calculation of loss which can be dealt with after an admission has been made.

In order to establish who the parties are and their relationship to each other the letter needs to contain the following information;

• the name and business address of the adviser and of the company who employed the adviser who sold the policy
• the endowment policy number which is on the actual document and may also be contained in any correspondence that has been retained
• the name and address of insurance company on the policy documents
• the date on the policy
• the target amount of the policy

The letter should also contain the grounds of the alleged mis selling specifically whether or not this method of repayment was suitable and whether or not there was a breach of the Financial Services Authority rules when the policy was sold.

We represent an independent network of qualified actuaries, lawyers, financial advisers and insurance experts who work together as a specialist team when necessary to settle claims against life companies, banks, solicitors and insurance brokers. Our professionals only deal with claims on a risk free no win no fee basis and if the claim is unsuccessful for any reason they will make no charge whatsoever. You will not be asked to fund or finance your application in any respect and you will not have to buy insurance or take out any loans. Our clients never pay any charges unless the claim is settled successfully. If you would like to speak to a specialist just complete the contact form or call the helpline and one of our experts will discuss your potential claim without any further obligation.