Extra Compensation Won
The Financial Services Authority (FSA) claims that due to its pressure, life assurance companies and others involved in the most notorious financial scandal in recent British history, have been forced to pay compensation to over 100,000 customers whose endowment mis-selling complaints had previously been rejected.
The FSA claims that due to its pressure, 75% of the rejected claims have so far been decided in favour of the customers.
This represents around an extra £120m in compensation.
Vernon Everitt from the FSA gave warning to the financial services industry that the FSA would be keeping a very close eye on how the firms were operating.
"It is encouraging that firms have improved the speed and quality of how they handle complaints.
News of a potential shortfall is a major worry for consumers and firms owe it to them to deal with their complaints quickly and fairly.
They need to pay particular attention to helping people deal with shortfalls when policies mature."
Around 1.8 million people have received compensation for mis-sold underperforming useless endowment products, totalling £2.7BN.
The FSA should be wary of indulging in too much self congratulations. Millions of people are still facing a shortfall on their endowment policy, with little idea of how they are going to cover their mortgage debt.
The life assurance industry could put a stop to this chaos now, by agreeing to underwrite these useless underperforming products. Instead they are more than happy to pass the buck to others.