The Endowment Diary

The Endowment Diary


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 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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