Yes, you may have a valid complaint and be due some redress – as long as you can show that you were not properly advised at the time of the sale and you lost out financially as a result.
Should I complain if:
_ My endowment policy finishes after I retire?
You may have a valid complaint if the adviser did not check that you were likely to be able to afford to carry on paying the premiums after you retired.
_ I was advised to cancel one endowment policy and take out another?
You may have a valid complaint. An endowment policy is a long-term investment that often gives a poor return if you cash it in early. You should usually avoid cashing in one policy and taking out another for the same purpose.
_ My endowment policy runs on after my mortgage loan is due to finish?
You may have a valid complaint. An endowment policy sold to repay a mortgage loan will not normally be suitable if it finishes after the date when the loan has to be repaid.
_ I was given a guarantee that the endowment policy would pay off my mortgage loan?
You are likely to have a valid complaint if you can show that you were told that the endowment policy was guaranteed to pay out enough to pay off your mortgage loan and that this was part of the legal contract between you and the firm. This is likely to be rare.
Will I be charged for making my complaint?
You will not be charged if you complain to the firm that sold you the policy.
If you need to refer your complaint to the Ombudsman, this service is also free.
Complaints management companies
Some companies offer to help consumers pursue their complaints with financial services firms and with the Ombudsman. In return, the consumer has to pay the company a fee, usually in the form of a fixed share of any compensation that is awarded for a successful complaint.
Some companies ask for a fee upfront, and you may still have to pay a fee if you decide not to use them. So make sure you understand what you may have to pay and when you would have to pay it.
A number of these companies are currently focusing on mortgage endowment complaints, where the ‘success fee’ you would have to give them can amount to hundreds or even thousands of pounds. This is money that you obviously won’t then be able to put towards paying off your mortgage. And using these companies does not necessarily increase the chances of your complaint succeeding or of your getting compensation.
Your own circumstances may mean that you would find it helpful to use one of these companies to handle the complaint for you.
But think carefully about the likely costs and benefits of this and do check the fees and conditions before you sign any contract.
From April 2007 complaints management companies operating in England and Wales must be authorised by the Department for Constitutional Affairs – see Useful Contacts .
What if I can’t trace the firm that sold me the endowment policy, or the firm has ceased trading?
If you bought your endowment policy through an independent financial adviser, your endowment company should have the details of who sold it to you. If you’re not sure the firm still exists, contact the FSA Consumer Helpline or use the Check our Register service – see Useful contacts .
If you cannot trace the firm because it has ceased trading, you can contact the Financial
Services Compensation Scheme (FSCS) – see
Useful contacts.
The FSCS is a ‘fund of last resort’ for consumers who have a claim against a firm that has been authorised by the FSA but is unable (or likely to be unable) to pay claims against it, often because it has ceased trading. But the FSCS is unlikely to be able to help you if the advice was given before 28 August 1988.
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