The Endowment Diary

The Endowment Diary

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

Monday, December 20, 2004

Trouble Ahead

It is reported that the Financial Ombudsman Service (FOS) has warned that it won't be unable to cope with the mortgage endowment complaints, next year; as there is expected to be steep rise in these complaints.

The rise in endowment complaints is expected, because the large life assurance companies will be sending out letters in the New Year to their policyholders; these will warn them about the 3 year time-bar rule.

Policyholders have 3 years from receipt of the first warning letter to complain.

The FOS is now getting fed up with endowment providers, who are disregarding complaint handling guidelines.

"..Some firms are systematically rejecting swathes of complaints with little or no investigation..."

It is reported that Halifax and Abbey National are among the names passed on to the FSA, by the FOS, in respect of shortcomings on complaint handling.

The FOS wants steps taken to force providers to settle cases themselves.

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