The Endowment Diary

The Endowment Diary

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The Endowment Mis-selling Debacle - one of the UK's worst financial scandals

Tuesday, December 10, 2002

Was this a scam or not?

Your views, please, on the following correspondence between myself and The Times; concerning a solicitor's scheme to help endowment holders that came to nothing:

My note 5 Dec (extract):

"...I received this note from a visitor to my website yesterday. As an experienced auditor and fraud investigator, my instincts tell me that something is not quite right (assuming the facts of the note are correct)....

Maybe you could do a little discrete digging?

Extract of note:

".... Two years ago while pondering which way to go with a claim about an endowment sold to me in 1990, I saw an article in The Times entitled "Lawyer helps endowment victims to sue". The legal firm, (edited out), appealed for mortgage holders to take a group action against insurers and advisers. I took the bait and paid a fee of £375. After prevaricating for two years they now say they are not going to proceed and have advised me and I presume the other 250-odd in the group that: you have the option to 'make a complaint yourself'' !!! I would be interested to know if there are others in the group visiting your site. I will now make a claim direct if I haven't missed the boat..."...."

The Times responsed 7 Dec saying that they had talked to the solicitor, and that the scheme was being suspended because they were unable to obtain legal expenses insurance. The Times was advised that people would get their money back.

My note to The Times 8 Dec (extract):

"...Many thanks for looking into this.

.... The note I received from my visitor says some 250 people sent money to this company.

So 250 at £375 per head gives £93750 which at say 5% pa over two years gives £9375 in interest; nice money for doing no work!

Maybe the solicitors should pay back the interest as well?..."

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