The Endowment Diary

The Endowment Diary

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

Tuesday, October 05, 2004

Think It's Bad in England?

Those of you who think that you are having a tough time in England, trying to claim redress for an underperforming endowment policy; should spare a thought for those living in Scotland.

It seems that the only channel Scottish endowment holders can take, when claiming compensation, is to use a solicitor to make a case against the original solicitor who mis-sold the policy.

In Scotland it is solicitors who handle property sales.

The Financial Ombudsman Service (FOS) cannot help, as solicitors advising on investments only came under the Financial Services Authority in December 2001.

The Law Society of Scotland can only order a solicitor to pay compensation up to a mere £1000, so they are not much use.

I hold the view that it is not so much the IFA that should be blamed, but the life assurance company that created this underperforming worthless product.

In my view tha the Sale of Goods Act should be invoked, after all these endowments were sold like TV's and cars, noting that the product is "not fit for purpose".

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