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 07, 2005

98% To Experience Endowment Shortfall

98% To Experience Endowment Shortfall

The Times reports that Ned Cazalet, of Cazalet Consulting the independent analyst, predicts that about 98% of the 2.7M households with endowment mortgages will suffer a shortfall.

He believes that many companies are still understating the size of the problem, because they are basing projections on an "unrealistic" 6% growth rate.

He notes that the life assurance companies "make a thing of the fact that many policies maturing today are on target, but these policies are only a handful of the total..".

98%?

That's a lot of very unhappy people.

Surely that's a large enough number of people, to make it worthwhile to get together in a class action against the life assurance companies?

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