Mis-sold endowments: how to claim Step-by-step
Your complaint will be a two or four-stage process, depending on how your mortgage company responds.
1Make your complaint
First complain to the firm that employed the adviser who sold you the endowment policy. Firms must have a proper complaints process. You should make your complaint as soon as possible - if you delay, you may lose the right to claim compensation because of time limits on making a complaint.
Find as much of your paperwork as you can. You'll need the policy number of your endowment and the firm's address. You can also request a copy of your endowment file from your endowment company when you make the complaint.
Use the Which? complaint letter generator to write a letter to the company. You should also be able call the endowment company helpline for further help.
Many firms will ask for more information from you and may ask you to fill in an endowment mortgage questionnaire.
2The company responds
After the firm has investigated your complaint, it should send you a final response letter within eight weeks.
If the company upholds your complaint, it will offer you compensation. This will be worked out using Financial Services Authority guidelines.
3Contact the Financial Ombudsman Service
If you aren’t satisfied with the results of your complaint, you have the right to take your complaint to the Financial Ombudsman Service. This is a free service. You can find out more about how it can help you by going to the Financial Ombudsman Service website.
If you were sold your endowment in or before 1988 you don't automatically have the right to take your complaint to the Financial Ombudsman Service.
If the adviser or company that sold you the endowment has gone into receivership you should contact the Financial Services Compensation Scheme directly. If you can't find the company, you should go directly to the Financial Services Authority (FSA).
4The Financial Ombudsman makes a decision
If your complaint is upheld, the company, or sometimes the Ombudsman, will work out whether you are owed compensation. This is not guaranteed to pay off any shortfall you have, but is worked out to ensure you are put back in the position you would have been in had you received suitable advice in the first place.
There is, of course, a possibility that the company and the Financial Ombudsman will reject your complaint. However, if you have considered the grounds for complaint and believe you were mis-sold your endowment policy, you should go ahead. The complaint process is free.
As a consumer you can take your complaint to court, but we would strongly advise you to think very carefully before doing so.
More information:
Financial Services Compensation Scheme - Explains more about how the scheme handles complaints
Financial Ombudsman Service - Information about endowment complaints
Financial Services Authority - Information about endowment complaints
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