The Endowment Diary

The Endowment Diary

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

Tuesday, October 04, 2011

A Crock of Shite

How "nice", Legal & General (L&G) wrote to me yesterday advising me that one of my "with profits" (a misnomer if ever there was one) endowment polices that I have with them will experience a shortfall.

The policy, which was taken out in 1991, will mature next year.

Its target was £39,700.

The expected shortfall, depending on whether the investment return is between 4%-8% (fat chance in today's markets!), is expected to be between £13K and £14K.

That's a shortfall of between 32%-35%!

Given that the whole point of these rip off policies was to pay off a mortgage debt, I am less than "impressed" with the performance of this product.

The good news is that L&G make a nice little earner from management charges for "manging" this crock of shite.

They even suggest, as one possible solution for making up the shortfall, that I extend the term or top it up!!!!!!!!!!!!!

Let us not forget that the purpose of these shite products was to pay off mortgage debts, they have failed.

Therefore the products are faulty.

I am amazed that no one has yet brought a class action against the companies who "manage" these failed products.

If there are any law companies out there who want to try a class action, feel free to contact me.