The Cost of The Endowment Scandal
The endowment mortgage scandal continues to ratchet up costs.
The Financial Services Compensation Scheme (FSCS) said that it handled 31,260 claims during the year to the end of March 2007, 21% more than during the previous 12 months.
FSCS said that 90% of the new claims it received related to endowment mortgages, with people unable to claim compensation for being mis-sold one of the mortgages because the firm or intermediary they bought it from had wound up.
Around 50% of those who complained about their endowment received compensation, getting an average of £1,900 each.
Overall the FSCS paid out £149M in compensation, around £66M of which related to claims about general insurance, with the rest going to claims over endowments, personal pensions and other investment issues.
The costs will continue to mount.