SPECIALIST ENDOWMENT CLAIM ADVICE

An endowment claim arises as a result of a policy of insurance failing to meet expectations upon maturity and thereby returning insufficient funds to pay off a loan used to purchase domestic property.

Action can only be taken to recover the shortfall if there was an element of misselling by the salesman of the policy of insurance which can take many guises but mainly refers to inadequate or misleading information having been imparted to the buyer to encourage purchase of that financial product at the expense of another, more suitable financial product.

This endowment claim problem is a product of the 1980’s and 1990’s at which time these policies attracted favourable tax benefits and, as a form of stock market investment, saw substantial improvements over a number of years on the back of a rising market. The financial investment market eventually slowed, stagnated and eventually reversed leaving many of those who had taken out a policy in the 1990’s at particular risk of a shortfall leaving insufficient funds to pay off their mortgage upon maturity.

The industry is regulated by the Financial Services Authority (FSA) and disputes and complaints regarding financial services are usually referred to the Financial Ombudsman Service (FOS) which has the power to order restitution. In addition the customer still has the right to make an endowment claim in the County Court or High Court by the issue of a summons or writ. In the event that the provider of the financial product is no longer able to pay any compensation ordered by the FOS, there is a fund of last resort administered under the Financial Services Compensation Scheme (FSCS) which in certain restricted circumstances will settle the amount outstanding that was awarded following a determination by the ombudsman.

The method by which over zealous or in many cases dishonest salesmen used to sell these products which were unsuitable for many people was to either keep the potential investor in the dark about risk or lie about the security of the investment. To legitimately sell this product a salesman should have indulged in a detailed and comprehensive fact find with the potential new investor and thereafter should have explained about the way premiums are invested on the stock market and finally the salesman should have investigated the buyers attitude to financial risk to ensure that the product was suitable and acceptable to that particular individual. If the salesman failed to take these steps then the product was probably missold and any shortfall will entitle the buyer to make an application initially to the seller for recompense and if that does not bring relief an application can be made to the Financial Services Ombudsman.

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.