UK ENDOWMENT COMPENSATION ADVICE

Over 10 million monthly paid insurance policies have been taken out over the years intended to be used to pay off mortgage loans on domestic property and by far the majority of them will fail to provide sufficient funds to settle the debt outstanding at maturity. This has lead to millions of people making an application to the seller of the product for endowment compensation on the basis that the product was ‘missold’ which will only succeed in certain limited circumstances provided that the claim is made in time. The regulations relating to claims are governed by the Financial Services Authority.

The Financial Services Authority
25 The North Colonnade,
Canary Wharf,
London
E14 5HS

The amount that can be claimed can be calculated by a number of different methods, the intention always being to put the purchasers of the products back into the position they would have been in had they not bought a missold policy. The endowment compensation awarded is usually calculated by comparing the current value of the fund with the value of a straight repayment mortgage fund had the same payments been applied to both. The difference between the two figures is the ‘shortfall’ and is the amount that an applicant who was missold a policy could expect to receive. Receipt of this balance should enable the policy holder to cash in his current insurance policy and apply that and the compensation to a straight repayment mortgage thereby removing the shortfall problem.

The first step in an endowment compensation claim is to write a letter to the provider of the financial product and at that stage settlement may be effected following negotiations. If the provider will not settle the claim or if the offer of settlement is insufficient then an application can be made to the Financial Ombudsman Service (FOS) to determine outstanding issues.

Financial Ombudsman Service
South Quay Plaza
183 Marsh Wall
London
E14 9SR

There is a fund of last resort which will pay compensation in very limited circumstances if the seller of the financial product is unable to do so.

Financial Services Compensation Scheme
7th floor Lloyds Chambers
Portsoken Street
London
E1 8BN

If you would like free advice either complete and send the contact form or call the helpline and an expert adviser will discuss your potential no win no fee compensation claim at no cost to you. If after discussing your claim with us you wish to take the matter no further then you are under no obligation to do so and you will not be charged for our initial advice.