Petition Launched

The Treasury Select Committee have reported that Britain's financial services industry is failing the consumer; ie that it is "crap".

Those of us holding underperforming endowment policies didn't need the Committee to tell us that, we knew that already!

I have today launched an electronic petition; pointing out that endowments were sold like TV's and cars, not investments. In view of this, it is my belief that issues regarding the mis-selling and underperformance of these policies should come under the remit of consumer legislation not the FSA.

If you would like to view, and sign the petition, please visit Compensation for Endowment Mis-selling.

Spread the word!

Thanks.

It seems that the Nationwide Building Society has a had a change of heart; regarding its treatment of people who have complained about mis-sold endowment polices, after the three year deadline.

The Treasury Select Committee, investigating the mis-selling of endowment policies, made it clear a month ago that the time bar rule should be discarded.

However, until recently the Nationwide had been disbarring late claimants. Now, following the Treasury Committee ruling and FSA rule changes in respect of warning letters, the Nationwide are reported to be writing to everyone they have time barred offering to investigate their complaints.

In the unlikely event that the Tories win the next election, Oliver Letwin has said that they will seriously consider shutting down the FSA.

How will this help those of us seeking redress for the mis-selling of endowment policies?

Please feel free to use the "Fax Your MP" box on this site to ask him that question.

It is reported that Jeremy Goford, the outgoing president of the Institute of Actuaries, has noted that the present system of commission payments to independent financial advisers (IFA's) must be changed.

He feels that the current system encourages IFA's to sell products that are detrimental to the interests of the consumer.

One fine example of this, as we know, was the sale of endowment policies in the 1980's.

Goford is reported to have said, that it is the role of the actuarial profession to speak out when they see a flaw.

Now let me see, the "flaw" was in place some 20 years go. It has taken him 20 years to speak out.

How much confidence in the actuarial profession, and the financial services sector as a whole, does that give the poor consumer?

Ever Decreasing Circles

The increased number of complaints about failing endowment policies is causing headaches for the FSA.

Not only has its workload increased massively, but the funds sets aside to compensate people claiming under the financial services compensation scheme seem to be running out.

The scheme is used to compensate people who have lost money from firms that have gone bust.

The FSA is asking for a further £15M, on top of the £33M it acquired a few months ago.

The catch is, and there always is a catch, that the money will be derived from higher subscriptions charged to financial services firms; they, no doubt, will pass these charges on to the long suffering holders of endowment policies.

The Sunday Times had a good article yesterday, about how some life assurance companies may use questionnaires to invalidate claims by endowment policy holders for mis-selling.

If this is true, then it further undermines what little confidence people may have in the savings industry as a whole; and specifically the life assurance companies handling of endowment complaints.

Maybe the FSA should investigate this issue?

To read the article visit Sunday Times.

I wonder quite how low some organisations are prepared to sink, in order to avoid compensating the hapless holders of endowment policies for the mis-selling scandal of the 1980's?