The Endowment Diary

The Endowment Diary

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

Thursday, June 30, 2005

Endowment Complaints Quadruple

Endowment Complaints Quadruple

The number of claims being made by people who hold useless and underperforming endowment policies, has risen dramatically.

The Financial Ombudsman Service (FOS) has said that it received 70,000 new complaints about endowment mortgages last year.

That is four times as many as it received three years ago.

The FOS expect that the level of complaints will increase; as people received re-projection letters, which will warn them that their policies are going to fail.

Walter Merricks, chief ombudsman, is quoted as saying:

"The number [of disputes] we can expect to receive in the current year will largely be determined by how financial services firms meet the new regulatory requirements on so-called re-projection letters."

The FOS noted that the Financial Services Authority (FSA) had found evidence of serious shortcomings, by some firms, in the handling of endowment complaints.

As noted before, people should be going to jail for this.

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