The Endowment Diary

The Endowment Diary

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

Saturday, October 02, 2004

Red Alert High Risk of Shortfall

That is the opening line of the letter that I received today, from the life assurance company that "manages" my two endowment policies.

This "red alert" is in respect of my second endowment policy taken out in 1991, and due to expire in 2012.

The policy was originally meant to cover a mortgage of £39700.

Today's "prediction" shows that it is likely to produce a shortfall of up to £14500, that is about 36% of the target amount.

How these people can call themselves professionals is beyond me.

The letter then helpfully suggests that I may need to take action, other than just suing the idiots who designed this worthless product.

To add insult to injury, one of their suggestions is that I may like to top up my endowment plan.

Who are they trying to kid?

Having been castigated by the press, the FSA and the Treasury Select Committee for mis-selling worthless products; our ever resourceful "professionals" now seek to make another quick buck, by trying to persuade people to put more money into these underperforming white elephants.

This strikes me as being another blatant example of mis-selling.

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