A tiny selection of comments about endowment mortgages.

Peter writes

I was sold an endowment policy about 16 years ago, at the time I was assured the policy would be more than adequate, to repay the amount in question. Today I receive a letter stating there was now a shortfall and I would have to increase payments to make up the shortfall. I personally think they have been fraudulent. Has anyone else had similar problems?

Very many will have had similar problems. The question is, all those years ago, were you given a cast iron guarantee? Any legal action might turn on this.

Andrew writes

I have recently been told that my endowment policy is unlikely to repay my mortgage. I have contacted the ALBA Life Assurance Company for advice and all they say is speak to a financial advisor. What advice would you give me.

Their stance is correct. I cannot offer individual financial advice either - see our disclaimer. I have more here.

Michael writes

I Just think this whole business stinks ,when are the government going to stand up for us!!! Is it to much to ask?? 3 million people are not stupid how can we all have been given sound advice, and now find that we are not going to pay off our mortgages. Is there any light out there, who's fighting for us, help, help, help!!!

writes

We have just had an initial assessment from the PIA and I echo the comments from others about having to prove that we were spun a line about guarantees and lump sums. There seems to be so many of us that they should be required to prove the reverse. We have been offered a compensation deal where we are returned to the position we would be in if we had taken out a repayment mortgage but this is only if their calculations show that we have a loss now. If those calculations don't show a loss..... we get nothing and if we can prove a loss in the future ... we get nothing. Not my definition of fair.

A reader writes

Recently had Initial View from Adjudicator.

Heavy emphasis on need for documentary evidence to 'prove' complaint!!! No weight given to recollections of complainer.

If you have any previous stock market-based investments (e.g. prior endowment mortgage, savings plans) beware cos these mean you understood the risks in the PIA's view.

The Adjudicator says that Ombudsman uses civil law of evidence, i.e. burden of proof is on the 'investor' DESPITE Sir Howard Davies chairman of FSA being quoted in press last year, that it was up to companies to prove THEY had given good advice etc.

Basically, I feel FSA/PIA/FOS are only wanting cast iron proof. They can't cope with everybody who was mis-sold, so they are taking a rigorous and industry friendly line to keep the numbers down. Also, they daren't upset the companies too much.

The PIA claim to be impartial. This is rubbish. If without solid documentary proof, the complaint is AUTOMATICALLY in favour of the company (which is effectively the result of applying civil law rules), then how can it be impartial??

Seriously, how many Financial Advisers or companies were stupid enough to put promises or guarantees in writing? Precious few.

They seem to have spent more time coming up with convoluted ways of calculating redress rather than looking closely at the point of sale tactics that salesmen use and the highly misleading literature they used.

The regulators are despite what the ABI say, fairly toothless. Only a small percentage of people with a genuine complaint are going to get justice (provided they aren't put off by the Questionnaire you have to fill in).

Yet again a regulator is portrayed as being a Watchdog, when in reality it acts more in a damage limitation role.

You might think I'm angry. Damn right I am, but also pessimistic about sending good money after bad in getting legal advice.

By way of illustration, Year ending July 2001, premiums paid £542, increase in value £3.

Suitable for a mortgage repayment??? It's a sick joke.

Index to comments