Alright For Some
The complaints company, which is handling the claim for compensation on one of my mis-sold endowment polices, wrote to me today.
The letter proudly informed me that they are expanding, and moving to larger premises.
Although I am pleased to see that they are doing well, it does seem that the misery of 8 million endowment policy holders is being used to supply the revenue stream for others.
Friday, June 04, 2004
Wednesday, June 02, 2004
New Rules, Same Problem
New rules came into force yesterday with regard to the information that life assurers must supply endowment policy holders with, concerning their underperforming endowment mortgages.
The rules require that policy providers must warn consumers of approaching deadlines for complaints about failing endowment policies. The policy provider must remind the holder when they have six months left to complain.
This of course does not address the actual problem, namely attaining compensation for the policy shortfall.
New rules came into force yesterday with regard to the information that life assurers must supply endowment policy holders with, concerning their underperforming endowment mortgages.
The rules require that policy providers must warn consumers of approaching deadlines for complaints about failing endowment policies. The policy provider must remind the holder when they have six months left to complain.
This of course does not address the actual problem, namely attaining compensation for the policy shortfall.
Wednesday, May 26, 2004
FSA Gets Tough
It seems that the FSA is getting tough with the rather "laid back" life assurance companies.
They have requested that the life assurance companies provide holders of underperforming endowment policies with more information about how to make a complaint.
Additionally, from June 1st, all insurers who apply the 3 year time limit on complaints have to write to policy holders 6 months before the end of the complaint window; to remind them to complain.
The question is, will they accept yopur complaint once you have made it?
What a mess!
It seems that the FSA is getting tough with the rather "laid back" life assurance companies.
They have requested that the life assurance companies provide holders of underperforming endowment policies with more information about how to make a complaint.
Additionally, from June 1st, all insurers who apply the 3 year time limit on complaints have to write to policy holders 6 months before the end of the complaint window; to remind them to complain.
The question is, will they accept yopur complaint once you have made it?
What a mess!
Monday, May 24, 2004
Tardy Payments
Not content with using all the excuses under the sun to avoid paying compensation, to those of us lumbered with an underperforming endowment policy, it seems that one major life assurer also delays paying compensation; even when it has agreed to pay the compensation.
The life assurer promises to pay within 28 days of compensation being agreed. Yet it appears that it breaches its own promises on a regular basis; keeping people waiting for over 10 weeks.
I understand that the FSA has put a warning shot across their bows, telling them to speed up; or face another fine.
The company claims that the delays are due to the sheer number of complaints.
Well, if it is bad now, wait and see how bad it will get over the coming year; as the penny finally drops that around 6 million people will face a shortfall and the claims flood in.
Not content with using all the excuses under the sun to avoid paying compensation, to those of us lumbered with an underperforming endowment policy, it seems that one major life assurer also delays paying compensation; even when it has agreed to pay the compensation.
The life assurer promises to pay within 28 days of compensation being agreed. Yet it appears that it breaches its own promises on a regular basis; keeping people waiting for over 10 weeks.
I understand that the FSA has put a warning shot across their bows, telling them to speed up; or face another fine.
The company claims that the delays are due to the sheer number of complaints.
Well, if it is bad now, wait and see how bad it will get over the coming year; as the penny finally drops that around 6 million people will face a shortfall and the claims flood in.
Thursday, May 20, 2004
Reuters report that Legal & General will contest the £1M fine from the FSA.
L&G accuse the FSA of having to seek extra evidence, because its original case was not strong enough.
The FSA had accused L&G, in November, of selling risky savings products to risk-averse customers; and mis-selling endowment policies between 1997 and 1999.
Those of you anxiously waiting to hear the outcome of the case, will have to hold your collective breaths; the tribunal will not begin until September.
L&G accuse the FSA of having to seek extra evidence, because its original case was not strong enough.
The FSA had accused L&G, in November, of selling risky savings products to risk-averse customers; and mis-selling endowment policies between 1997 and 1999.
Those of you anxiously waiting to hear the outcome of the case, will have to hold your collective breaths; the tribunal will not begin until September.
The Scandal That Won't Go Away
Despite hoping that the endowment mis-selling scandal will go away, life assurers are now having to face the same financial misery that the 6 million of us who bought these non performing white elephants have been enduring for the last few years.
Evidence of this emerged yesterday, as Nationwide has announced that it has tripled its provisions for compensating endowment mortgage customers; as complaints of mis-selling continue to escalate.
Fortunately for Nationwide, they do have a 21% increase in profits to cushion the effect.
Nationwide has raised its provision from £11M to £34M.
They admit that it is "possible that the value of some investment policies will not be sufficient to fully repay mortgages on maturity".
Quite!
Don't fear for Nationwide's future, its pre tax profits for year end April 2004 were £426M.
Despite hoping that the endowment mis-selling scandal will go away, life assurers are now having to face the same financial misery that the 6 million of us who bought these non performing white elephants have been enduring for the last few years.
Evidence of this emerged yesterday, as Nationwide has announced that it has tripled its provisions for compensating endowment mortgage customers; as complaints of mis-selling continue to escalate.
Fortunately for Nationwide, they do have a 21% increase in profits to cushion the effect.
Nationwide has raised its provision from £11M to £34M.
They admit that it is "possible that the value of some investment policies will not be sufficient to fully repay mortgages on maturity".
Quite!
Don't fear for Nationwide's future, its pre tax profits for year end April 2004 were £426M.
Tuesday, May 18, 2004
Sunday, May 16, 2004
I have just had a look at a wonderfully acerbic site, that takes a punch at the "Which" campaign for compensation for mis-sold endowment mortgages.
The site www.notwhich.co.uk, quite rightly, points out the risk of making fraudulent claims.
It then goes on to have a "pop" at Which, for allegedly recommending endowments in the 70's and 80's. They even have a complaint letter generator which you can send to Which.
I understand that the site is the brainchild of certain Independent Financial Advisers, who are sick of people complaining.
It is a splendidly entertaining site. However, the comment in the lurid green box at the bottom of the page; asking for regulation of "The Dammed Press", is something that I do not agree with at all.
Freedom of speech is essential, to suppress the media just because a vested interest does not like what they say would be a step towards dictatorship.
The site www.notwhich.co.uk, quite rightly, points out the risk of making fraudulent claims.
It then goes on to have a "pop" at Which, for allegedly recommending endowments in the 70's and 80's. They even have a complaint letter generator which you can send to Which.
I understand that the site is the brainchild of certain Independent Financial Advisers, who are sick of people complaining.
It is a splendidly entertaining site. However, the comment in the lurid green box at the bottom of the page; asking for regulation of "The Dammed Press", is something that I do not agree with at all.
Freedom of speech is essential, to suppress the media just because a vested interest does not like what they say would be a step towards dictatorship.
Friday, May 14, 2004
I see that the rules relating to compensation payments for mis-selling, may be adjusted by the end of this year.
The new rules will cover consumers who have lost money, because they have been mis-sold a product such as an endowment policy, or have been given poor financial advice.
The scheme will replace the voluntary arrangement currently practiced by brokers et al, and will come into force from October 2004.
The new rules will cover consumers who have lost money, because they have been mis-sold a product such as an endowment policy, or have been given poor financial advice.
The scheme will replace the voluntary arrangement currently practiced by brokers et al, and will come into force from October 2004.
Tuesday, May 11, 2004
Shutting The Stable Door
It seems that the government has finally woken up to implications of the endowment policy mis-selling scandal.
However, before we all crack open the champagne; in the expectation that some form of compensation will be winging its way to us, I must dampen your spirits.
The government, realising the mess that the mis-selling of endowments has caused, is making sure that the same thing will not happen again for home reversion schemes.
These schemes are whereby older people may release the equity from their homes, and live off that until they die.
Needless to say these schemes have every chance of being as massively mis-sold, as the endowment polices were in the 1980's.
Therefore the government will regulate them.
Announcing the decision, financial secretary Ruth Kelly said that buying such a policy represented a huge decision.
She added: "It can have significant implications for tax, benefits, inheritance and long-term financial planning."
No kidding!
It seems that the government has finally woken up to implications of the endowment policy mis-selling scandal.
However, before we all crack open the champagne; in the expectation that some form of compensation will be winging its way to us, I must dampen your spirits.
The government, realising the mess that the mis-selling of endowments has caused, is making sure that the same thing will not happen again for home reversion schemes.
These schemes are whereby older people may release the equity from their homes, and live off that until they die.
Needless to say these schemes have every chance of being as massively mis-sold, as the endowment polices were in the 1980's.
Therefore the government will regulate them.
Announcing the decision, financial secretary Ruth Kelly said that buying such a policy represented a huge decision.
She added: "It can have significant implications for tax, benefits, inheritance and long-term financial planning."
No kidding!
Subscribe to:
Posts (Atom)