Endowment persistence pays off

Thousands of homeowners are out of pocket

Amid all the complaints about mortgage mis-selling there is one group of people with good reason to feel especially aggrieved.

They're investors who bought their endowments before 1988, when new consumer protection from the Financial Services Act came into force.

But there's encouraging news from one Working Lunch viewer.

Mark Selwyn has two endowments. Both are from the Halifax and both are the subjects of complaints because of their predicted shortfall.

Requirement

"I thought I had been sold endowment policies that would repay my mortgage in 25 years' time," he says.

Pre-1988 policies did not look at attitude to risk

But because one is from 1987 and one from 1989, Mark was told there could be no redress for the earlier endowment because determining a client's attitude to risk was not a requirement at that time.

However, Mark has now been told his complaint is being upheld and the Halifax will restore him to the financial position he would have been in if he'd been properly advised.

Mark had decided to pursue his complaint with the Financial Ombudsman Service, and it seems that prompted the Halifax to undertake another review of his case.

Appropriate

The bank said it couldn't comment on Mark's case specifically, but added: "We take every endowment complaints seriously and investigate it fully.

Mark: "System is crazy"

"Where there is evidence that an endowment policy was mis-sold we have and will offer appropriate compensation."

Mark is pleased at the outcome but less happy at being forced to jump through hoops.

"I think the whole system is crazy," he says.

"Just because one of my policies was in 1987 they rejected it but the other policy in 1989 they accepted my complaint."

But his persistence did pay off, and is encouraging news for other policyholders who've been told their complaints won't be considered.

However, anyone who hasn't complained yet should act quickly - time could be running out.

And another warning - your complaints might fall on deaf ears if your pre-1988 policy was bought through an IFA and not direct from a bank or insurance company.