Extract of letter sent to the Ombudsman:
"...I wish to make a claim for financial redress in respect of an endowment policy sold to me by A in December 1991. The policy number is ***, the target amount being £39700.
The basis of my claim is as follows:
Other options for repaying the mortgage were not discussed with me.
The adviser did not explain there was a risk the endowment would not meet the target amount.
The adviser did not discuss the funds my endowment would be invested in.
The adviser did not establish my attitude to risk.
The adviser did not explain the fees and charges on the policy.
The adviser said that there would be a lump sum in addition at the end of the term.
The L&G fact find, which dealt with my investment attitude, was not completed; showing that A breached their own procedures.
Despite the incomplete fact find A assessed that I had a low attitude to risk; yet sold me a product with a high risk profile.
The written financial quote provided by A at the time stated:
“..A regular investment is made into an endowment life assurance policy, which is designed to repay your mortgage at the end of the mortgage term….
A’s range of build up mortgage plans is designed not only to repay your mortgage at the end of the mortgage term but also to provide you with an additional cash sum….
By taking out an A build up mortgage plan you can be assured that you are making the right decision for 3 important reasons…
1 Investing into an endowment assurance policy offers you the prospect of a substantial surplus cash sum after the mortgage has been repaid..”.
The above constitutes a guarantee.
I draw your attention to the case (summarised in The Times 26 October 2002) where David Barker cited a 1965 Court of Appeal judgement by Lord Denning which ruled that a verbal statement which induced someone to take out a contract could be considered to be a warranty. Mr Barker won his case. The guarantee quoted above was in writing.
I first raised my complaint with A on 11 October 2002. Since then I have exchanged a number of letters enquiring as to the progress. I was promised a final response by January 2003, one of several deadlines that was missed. They finally rejected my complaint in a letter dated 29 July 2003. I regard this delay as excessive and unacceptable.
Finally, why would I have opted for an endowment if it were not going to pay off the mortgage? What would have been the point of finding myself at the end of the term with a shortfall?
I would be grateful for your assistance in claiming redress with regard to this matter.
Please do not hesitate to contact me if you require further details.
Thank you in advance...."