I understand that Abbey is trying to avoid responsibility for mis-selling endowment policies pre April 1988.
Their rationale being that before the Financial Services Act took effect in April 1988, there were no rules covering endowments.
However, there is a voluntary agreement whereby banks are supposed to take responsibility for investment products they sold before April 1988.
Abbey happily argues the point that it was under no obligation to inform borrowers about any risks, it was in their view the role of the endowment company to explain the risks.
How very helpful of them!
Needless to say, if it wins this argument, it will not have to pay compensation for endowment policies mis-sold before April 1988.
It certainly needs all the financial help it can get, as over the last two years it has lost over £1.5BN.
It may be that the Financial Ombudsman Service takes a different view.
In my view, do not "lay down and die" just because your IFA has fobbed you off with the "Abbey excuse"; take it to the Ombudsman.
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