Expert Conned
It seems that even those at the very top of the finance industry, were conned into believing that endowment policies would work.
It is reported that Simon Chapman, a senior partner with PricewaterhouseCoopers (PWC) and an expert on financial services compliance, bought a Legal & General (L&G) endowment policy.
He was assured that the L&G policy was "a sure fire way" to pay off his mortgage, and produce a cash surplus.
Familiar words?
This revelation came out during the court battle between the Financial Services Authority (FSA) and L&G, last week.
Happily for Mr Chapman, after complaining about the policy being mis-sold, he received compensation of premiums plus interest.
Let us hope that we all receive such treatment from our life assurance companies!
Ironically he was then hired, jointly by the FSA and L&G, to investigate a sample of L&G endowment customers; as part of an FSA investigation into alleged mis-selling.
Monday, October 11, 2004
Saturday, October 09, 2004
Friday, October 08, 2004
Lies, Damned Lies
Embattled endowment policy holders, that's you and me folks, suffered another kick in the "cahoonas" yesterday; as Standard Life reneged on its promise to cover endowment shortfalls.
The reason that they reneged on this promise, was in effect to make the company look more attractive to investors when it floats in 2006.
The promise, known as the "Standard Life Mortgage Endowment Promise", was made four years ago. Standard Life had pledged to provide financial support to customers with endowments that failed to meet their target value.
Seemingly that promise was bullshit.
The cover will now only apply to those polices maturing before the end of 2005.
This move is expected to adversely affect 600000 policy holders with underperforming endowments.
This is bad news for policy holders in Norwich Union, which had also given a similar undertaking to attract customers. It is likely that Norwich Union will feel free to renege on their promise, now that they have no pressure to keep it. They have stated that they intend to honour it.
Standard Life has also set May 2006 as the deadline for complaining about endowment shortfalls.
As if this was not bad enough, Standard Life also announced that they will be cutting top ups on other policies by 40%-60%. This will exacerbate the size of policyholders' shortfalls.
Maybe disgruntled policy holders should buy a stake in the company, when it floats, then sack the directors?
The problem being, that most policy holders are now fretting as to where they will find the money to cover the shortfall on their underperforming useless endowment policies.
Embattled endowment policy holders, that's you and me folks, suffered another kick in the "cahoonas" yesterday; as Standard Life reneged on its promise to cover endowment shortfalls.
The reason that they reneged on this promise, was in effect to make the company look more attractive to investors when it floats in 2006.
The promise, known as the "Standard Life Mortgage Endowment Promise", was made four years ago. Standard Life had pledged to provide financial support to customers with endowments that failed to meet their target value.
Seemingly that promise was bullshit.
The cover will now only apply to those polices maturing before the end of 2005.
This move is expected to adversely affect 600000 policy holders with underperforming endowments.
This is bad news for policy holders in Norwich Union, which had also given a similar undertaking to attract customers. It is likely that Norwich Union will feel free to renege on their promise, now that they have no pressure to keep it. They have stated that they intend to honour it.
Standard Life has also set May 2006 as the deadline for complaining about endowment shortfalls.
As if this was not bad enough, Standard Life also announced that they will be cutting top ups on other policies by 40%-60%. This will exacerbate the size of policyholders' shortfalls.
Maybe disgruntled policy holders should buy a stake in the company, when it floats, then sack the directors?
The problem being, that most policy holders are now fretting as to where they will find the money to cover the shortfall on their underperforming useless endowment policies.
Thursday, October 07, 2004
What is The Point of The FSA?
A few days ago, as noted on this site, I sent the FSA an email; asking for their reaction to the fact that my life assurance company suggested that I "top up" my underperforming, failing, endowment policy.
They replied today.
Their note contained links to parts of their site, with general information about endowments. However, they noted that they could not give opinions or rule interpretations; indeed they could offer no specific advice on the validity of any complaint that I may have.
May I ask, precisely what is the point of the FSA if it is not there to assist members of the public such as myself; when we are faced with a blatant attempt, by the life assurance companies, to con more money out of us?
A few days ago, as noted on this site, I sent the FSA an email; asking for their reaction to the fact that my life assurance company suggested that I "top up" my underperforming, failing, endowment policy.
They replied today.
Their note contained links to parts of their site, with general information about endowments. However, they noted that they could not give opinions or rule interpretations; indeed they could offer no specific advice on the validity of any complaint that I may have.
May I ask, precisely what is the point of the FSA if it is not there to assist members of the public such as myself; when we are faced with a blatant attempt, by the life assurance companies, to con more money out of us?
Wednesday, October 06, 2004
More Mis-selling
My "friendly" life assurance company has written to me again, this time they have sent me a warning letter about my other endowment policy.
This policy, taken out in 1987, was meant to cover a mortgage of £35K.
The projected shortfall is, roll on the drums......£10600.
In other words 30% of my mortgage.
Put that together with the other shortfall of £14500 projected by my life assurance company (see earlier post), and I am going to have to find £25K when my two endowments expire in 2012.
Do I think that I have been ripped off?
I do.
To add insult to injury, the life assurance company then goes on to suggest that I could top up my underperforming policy.
I think that it is high time that these companies were brought "to book" over this £40BN scandal that is bordering on the criminal.
My "friendly" life assurance company has written to me again, this time they have sent me a warning letter about my other endowment policy.
This policy, taken out in 1987, was meant to cover a mortgage of £35K.
The projected shortfall is, roll on the drums......£10600.
In other words 30% of my mortgage.
Put that together with the other shortfall of £14500 projected by my life assurance company (see earlier post), and I am going to have to find £25K when my two endowments expire in 2012.
Do I think that I have been ripped off?
I do.
To add insult to injury, the life assurance company then goes on to suggest that I could top up my underperforming policy.
I think that it is high time that these companies were brought "to book" over this £40BN scandal that is bordering on the criminal.
Tuesday, October 05, 2004
Think It's Bad in England?
Those of you who think that you are having a tough time in England, trying to claim redress for an underperforming endowment policy; should spare a thought for those living in Scotland.
It seems that the only channel Scottish endowment holders can take, when claiming compensation, is to use a solicitor to make a case against the original solicitor who mis-sold the policy.
In Scotland it is solicitors who handle property sales.
The Financial Ombudsman Service (FOS) cannot help, as solicitors advising on investments only came under the Financial Services Authority in December 2001.
The Law Society of Scotland can only order a solicitor to pay compensation up to a mere £1000, so they are not much use.
I hold the view that it is not so much the IFA that should be blamed, but the life assurance company that created this underperforming worthless product.
In my view tha the Sale of Goods Act should be invoked, after all these endowments were sold like TV's and cars, noting that the product is "not fit for purpose".
Those of you who think that you are having a tough time in England, trying to claim redress for an underperforming endowment policy; should spare a thought for those living in Scotland.
It seems that the only channel Scottish endowment holders can take, when claiming compensation, is to use a solicitor to make a case against the original solicitor who mis-sold the policy.
In Scotland it is solicitors who handle property sales.
The Financial Ombudsman Service (FOS) cannot help, as solicitors advising on investments only came under the Financial Services Authority in December 2001.
The Law Society of Scotland can only order a solicitor to pay compensation up to a mere £1000, so they are not much use.
I hold the view that it is not so much the IFA that should be blamed, but the life assurance company that created this underperforming worthless product.
In my view tha the Sale of Goods Act should be invoked, after all these endowments were sold like TV's and cars, noting that the product is "not fit for purpose".
Monday, October 04, 2004
What is The Worst Criminal Act? Car Theft, or Mis-selling an Endowment Policy?
An interesting report is due to be published later this month by the Crime and Society Foundation, a new criminal justice think-tank.
The report claims that official crime statistics are not a reliable indicator of the true level of offences.
One section of the report refers to the damage done to society as a whole, by the mis-selling of endowment mortgages. Quote:
"A prolific car thief might blight the lives of tens of hundreds of people. The mis-selling of endowment policies has blighted the lives of many thousands...".
As many of us have long suspected, despite what the FSA and life assurance companies pretend, the mis-selling of endowment policies was bordering on the criminal.
Are we likely to see any arrests?
An interesting report is due to be published later this month by the Crime and Society Foundation, a new criminal justice think-tank.
The report claims that official crime statistics are not a reliable indicator of the true level of offences.
One section of the report refers to the damage done to society as a whole, by the mis-selling of endowment mortgages. Quote:
"A prolific car thief might blight the lives of tens of hundreds of people. The mis-selling of endowment policies has blighted the lives of many thousands...".
As many of us have long suspected, despite what the FSA and life assurance companies pretend, the mis-selling of endowment policies was bordering on the criminal.
Are we likely to see any arrests?
Sunday, October 03, 2004
Saturday, October 02, 2004
Red Alert High Risk of Shortfall
That is the opening line of the letter that I received today, from the life assurance company that "manages" my two endowment policies.
This "red alert" is in respect of my second endowment policy taken out in 1991, and due to expire in 2012.
The policy was originally meant to cover a mortgage of £39700.
Today's "prediction" shows that it is likely to produce a shortfall of up to £14500, that is about 36% of the target amount.
How these people can call themselves professionals is beyond me.
The letter then helpfully suggests that I may need to take action, other than just suing the idiots who designed this worthless product.
To add insult to injury, one of their suggestions is that I may like to top up my endowment plan.
Who are they trying to kid?
Having been castigated by the press, the FSA and the Treasury Select Committee for mis-selling worthless products; our ever resourceful "professionals" now seek to make another quick buck, by trying to persuade people to put more money into these underperforming white elephants.
This strikes me as being another blatant example of mis-selling.
That is the opening line of the letter that I received today, from the life assurance company that "manages" my two endowment policies.
This "red alert" is in respect of my second endowment policy taken out in 1991, and due to expire in 2012.
The policy was originally meant to cover a mortgage of £39700.
Today's "prediction" shows that it is likely to produce a shortfall of up to £14500, that is about 36% of the target amount.
How these people can call themselves professionals is beyond me.
The letter then helpfully suggests that I may need to take action, other than just suing the idiots who designed this worthless product.
To add insult to injury, one of their suggestions is that I may like to top up my endowment plan.
Who are they trying to kid?
Having been castigated by the press, the FSA and the Treasury Select Committee for mis-selling worthless products; our ever resourceful "professionals" now seek to make another quick buck, by trying to persuade people to put more money into these underperforming white elephants.
This strikes me as being another blatant example of mis-selling.
Friday, October 01, 2004
Endowment Crisis Spreads
It seems that it is not only the hapless home owners in the UK, who are suffering from being mis-sold non performing endowment polices.
The cancer of this financial scandal has spread to the Republic of Ireland.
It is reported by RTE that the Irish Financial Services Regulatory Authority, has strongly urged anyone who believes that they were mis-sold an endowment mortgage to complain to the companies who sold them these white elephants.
It seems that out of the 90000 polices sold in Ireland, most endowment mortgage holders have been told that their policies will have shortfalls.
Well, I wish them luck.
Doubtless they will encounter the same instrasigence, and evasion, that the UK holders have encountered as they try to claim redress.
It seems that it is not only the hapless home owners in the UK, who are suffering from being mis-sold non performing endowment polices.
The cancer of this financial scandal has spread to the Republic of Ireland.
It is reported by RTE that the Irish Financial Services Regulatory Authority, has strongly urged anyone who believes that they were mis-sold an endowment mortgage to complain to the companies who sold them these white elephants.
It seems that out of the 90000 polices sold in Ireland, most endowment mortgage holders have been told that their policies will have shortfalls.
Well, I wish them luck.
Doubtless they will encounter the same instrasigence, and evasion, that the UK holders have encountered as they try to claim redress.
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