The Endowment Diary

The Endowment Diary

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

Monday, July 31, 2006

Endowment Claims Double

Endowment Claims Double

The Financial Services Authority (FSA) has doubled its estimate of how much firms have paid out in compensation for mis-selling endowment mortgages in the past, up to £2.2BN.

The FSA said the estimate is up to April 1, 2006.

The previous estimate of £1.1BN was up to the end of 2004.

Compensation payments have jumped sharply, £945M was paid in the year to April 1 with the number of complaints rising to 767,152.

In the year to April 1, 2005, compensation was £601M for 324,935 complaints. In 2003/04 compensation was £424M for 202,200 complaints, and before April 2003 compensation totalled £225M for 250,000 complaints.

Bradford & Bingley on Thursday announced its compensation provision would rise to £165M.

All of this pain could be avoided if the life assurance companies bit the bullet between their teeth, and agreed to underwrite these useless policies.

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