UK ENDOWMENT MISSELLING
LIMITATION PERIOD
We are a specialist company that provides advice and representation in endowment misselling compensation claims. We use the no win no fee scheme to ensure that there is no risk and we guarantee that you will not have to pay for any expenses as the endowment compensation claim proceeds. If the endowment complaint is unsuccessful we will not make any charge whatsoever. Our clients never pay any charges unless the claim is settled successfully. We do not use solicitors to deal with your claim, as we believe that they are not best qualified to settle claims involving financial issues revolving around an insurance policy. We offer the opportunity to discuss your claim with an expert at no charge and with no further obligation, and if you decide to proceed no further then we will not charge you for the advice. If you would like to take advantage of our experts just complete the contact form and a specialist will phone you as soon as possible.
The Financial Services Authority, which is the regulator in these matters, has introduced endowment misselling regulations requiring the sellers of endowment policies to compensate their clients if, within the rules, the policy of insurance was miss sold. The regulations require each life company to audit their client's fund every two years and advise in writing on the current state of the fund and its anticipated future progress. A ‘green letter’ means that the investment made by the company is on target to reach the initially anticipated sum to enable the loan to be paid off at the end of the term. This is not a guarantee that the situation will not change in the future and deteriorate leading to the receipt of an ‘amber letter’ or a ‘red letter’. An amber letter signifies that there is a risk that the fund will not enable the mortgage to be paid off at the end of the term and a red letter indicates that there is a high risk of the fund being insufficient to pay off the outstanding debt.
Limitation refers to the time period before which a claim for compensation must be submitted. The Financial Services Authority rules require endowment misselling claims to be submitted within three years of receipt of the first red letter. This should ensure that there are two red letters received within that time period of three years as the funds must be reviewed and notified to the customer every two years. If the three year period is exceeded and no application is made then the opportunity to claim compensation may have been lost forever however a number of life companies have informally agreed not to take issue on the expiry of the limitation period and pay compensation even if the period has expired. The limitation period clearly operates in the favour of the insurance companies who can escape liability if the customer does not respond to the warning letters. The number of companies waving the limitation period is reducing as companies have become more aware of the consequences of the problem which affects over 6 million policy holders with a potential total claims value of over £30 Billion.
