The Endowment Diary

The Endowment Diary

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

Saturday, November 15, 2003

I have sent the following email to Angela Eagle MP, who is on the Treasury Select Committee; they have lambasted the insurance industry this week, as it is estimated that there will be a £100M shortfall on endowment policies.

"..Dear Ms Eagle,

I read with interest your views on endowment policies, expressed in the Treasury Select Committee.

I agree; to my view there are two issues that the FSA, and the insurance industry, seem to be neglecting wrt compensation claims:

1 The policies were sold like TV's and cars; ie as products with a defined purpose, to pay off the mortgage debt, not as investments.

When a car or TV breaks down, and is shown not to be "fit for purpose", the consumer is entitled to a replacemnt or money back.

The endowment policies, whose sole purpose was to pay off a mortgage debt, have been shown to be "not fit for purpose".

2 Why would any rational individual buy an endowment if it were not going to pay off the mortgage?

Taking the above into account, I believe that the industry should compensate the 5 million of us who face a shortfall.

You may be interested to know that I have been keeping a web diary for the last year charting my progress, or lack of it, in claiming redress.

This can be viewed by going to my website http://www.kenfrost.com and going to the "Endowment Diary" section.

Additionally, you may be interested to know that I have registered with the BBC iCan site to express an interest in starting a campaign to claim compensation; it will be interesting to see if others join in.

Please feel free to contact me if you have any queries..."

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