The Endowment Diary

The Endowment Diary


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

Monday, March 26, 2007

Sacked By Text

Cheshireonline reports that police had to be called after a Chester businessman sacked his workers by mobile phone text message.

"Lee Wilson, MD of Stanley Porters and Co Ltd, texted staff at 7.45am on Wednesday, with the words: 'Due to the lack of professionalism and poor overall performance of the Chester office, i hav no option but to let u go.

'Ur pay wil be calculated and paid on pay day. U are not required to go into the office. All belongings wil be sent to u.'

But the four workers, whose job was to win compensation for home owners who had been mis-sold endowment mortgages, collected their belongings from the Union Street offices and asked for the attendance of police to prevent trouble."

Monday, March 19, 2007

Standard Life

Standard Life

In rather a curate's egg development, Standard Life is due to write to its 750,000 endowment policy holders informing them that their endowments may not pay off their mortgages.

However, Standard Life will attempt to sugar the unpleasant pill by telling its hapless policy holders that the shortfall may not be as bad as it was anticipated a year ago.

So that's alright then!

It is estimated that around 90% of Standard Life's policies are not on target to meet the debt that they were meant to cover.

A Standard Life spokesman said:

"For many customers, a small shortfall will not present a problem, as these consumers have already paid off the mortgage, and were holding on to their policies for savings purposes. Others may be fully aware of the position of their contract, but have other savings to make up the shortfall, and so be comfortable with the situation."

I find the logic of the above to be highly dubious. Was not the point of taking these useless policies out to cover the mortgage?

Therefore how can a policy holder be "comfortable" with a shortfall?

Thursday, March 01, 2007

HBOS Profits

HBOS Profits

Congratulations to HBOS, which has announced a 26% rise in profits for 2006 to £2.12BN.

This despite that fact that last year HBOS had to set aside a £95MN provision for compensation related to customer complaints over the bank's sale of endowment mortgages.