The Endowment Diary

The Endowment Diary

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

Monday, November 22, 2004

Ambulance Chasers?

It seems that some of the companies that handle endowment complaints, have incurred the ire of the life assurance companies.

Norwich Union is reportedly asking for endowment complaint handlers to be regulated by the FSA, to protect consumers.

It seems that some complaints firms target people living on estates built in the late 1980s and early 1990s. This was the time when many endowment policies were sold.

Norwich Union believes that these companies should operate under the same rules, and regulations, as the life assurance companies; thus levelling the playing field.

One particular reason that the life assurance companies are irked by complaint handlers, is the fact that nearly one fifth of the complaints that they (the life assurance companies) have to deal with emanate from professional complaint handlers.

The cost to the consumer of using these firms can be 25%, or more, of any compensation won. The cost of using the Financial Ombudsman is zero.

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