Complaint Letter

Eaton Legal Services


We deal with these claims on a no win no fee basis and if the endowment complaint is unsuccessful we will not make any charge to you. Our claim scheme is completely risk free and you will not have to pay for any expenses during the course of the claim. If you would like free advice on the telephone, without obligation, just complete the contact form.

If you believe that you have been mis-sold an endowment policy then you or your representative should begin by sending a formal letter to the firm who sold you the policy. Taking your complaint to them first gives them the opportunity to correct things and pay compensation without the need for any other party to be involved. If you find that you are unable to resolve the situation in this way then you will be advised to take your case to the Financial Ombudsman Service and you must apply within six months of the insurance company denying you compensation.

Compensation for mis-selling is worked out by comparing your current financial situation with the situation you would ordinarily be in, had you initially taken out a repayment mortgage. To claim compensation, victims need to show that as a result of unsuitable advice they are now financially worse off.

Compensation is calculated by comparing the paid interest, as well as the premiums and current surrender value of your endowment policy, with the capital repayments and mortgage interest the claimant could have paid on an alternative repayment mortgage and how much of that capital could have been paid off the mortgage. If your policy has grown to be worth more than the capital you would have paid off with an equivalent repayment mortgage and you have received no negative financial affects then you will not be eligible for compensation.

Due to the financial boom of the 1980s and with Stock Market returns doing well, repayment of mortgages with an insurance policy seemed like a sensible financial investment. With the mortgage paid off and perhaps a lump of money to see you into retirement, these policies were an obvious choice for many. However, millions now find themselves facing shortfalls that cannot cover their mortgages. Believing that their endowments would not only pay off their mortgages but give them a healthy sum for retirement, people trusted the financial companies who advised on taking up such a policy.

Of almost 9 million of these policies sold in the UK, most are unable to repay the initial loan amount and probably will not recover enough to hit target. The majority of people were mis-sold these policies, which now have a surrender value of less than the premiums that were paid into them and are justified in making a valid endowment complaint. When policy holders receive ‘Red’ letters informing them of the shortfalls, they are faced with the challenge of either maintaining the policy and increasing contributions or cashing it in and investing elsewhere. Poor advice and the failure to properly explain the risks of taking out a policy are central to many complaints.

We are able to advise and deal with applications for compensation both to the insurance company that sold the policy and if necessary to the Financial Ombudsman Service and in certain other circumstances to different relevant bodies. We offer free initial advice with no obligation and if after taking advice you decide to proceed no further then you will not be billed for the initial advice.

0845 456 8669