We deal with endowment misselling claims on a no win no fee basis and if the complaint is unsuccessful we will not make any charge to you. Our claims are completely risk free and you will not have to fund or pay for any expenses during the course of the endowment compensation claim. Our clients never pay any charges unless the claim is settled successfully. If you would like free advice on the telephone, without obligation, just complete the contact form.
We are a founding member of the Claims Standards Council which is independent from the claims industry and seeks to ensure that that its members deal with consumers on the basis of decency, probity and fairness by :-
- vetting individuals and organisations seeking membership
- compliance with a transparent, thorough, end-to-end process for handing claims
- operating independent complaints and discipline arrangements
In the late 1980s and the early 1990s, this type of mortgage became very popular and is an interest only loan secured on the property alongside an investment by the insurance company in the Stock Market consisting of the monthly premiums paid on the policy of insurance which are in due course, at maturity of the policy, used as a fund to pay off the loan. At the time, this method of repayment seemed an attractive option to many homeowners and because of tax advantages appeared to save money on an straight repayment loan. Unfortunately, numerous problems arose from the potential risks of the policy that were not properly considered at the time and millions of people entered a binding financial contract which has resulted in the current endowment misselling scandal.
Financial advisors saw these mortgages as a positive alternative to traditional repayment mortgages with the added benefit, from their point of view, that they could earn a substantial sales commission on the policy. The policy was also favoured because it appeared to serve the customer by exploiting the benefits of what was then current tax relief.
By 1988 the vast majority of new mortgages were linked to insurance policies and at that time it appeared as though the investment would, in many cases, not only pay off the capital, but also leave a good surplus amount for the customer to spend. However the stock market failed to live up to expectations resulting in potential shortfalls on most policies that would not in many cases even repay the amount that the customer had paid in instalments let alone repay the mortgage borrowing or pay a lump sum in addition.
The quick sale of these insurance based plans to people who were either not told the risks, or were unsuited to the policy, left many people confused and in financial difficulty. This endowment misselling has made banks rethink their lending schemes and change the way they assess a potential borrowers’ financial position. By the end of 2003 the Financial Services Authority (FSA) and consumer groups began to collate evidence which all pointed to a lack of adequate information or advice given out to people when they bought their insurance policy. This issue has become a predominant factor in changing customer standards relating to financial services in the UK.
