Endowment complaint handling companies?

The aim of this site, and financevictims, is to help you do it yourself. You can read the general guidance here and from the Ombudsman. You can also look through the endowments discussion board to see how other people have fared.

The FSA says (in odd English) This is a service designed to be as easy as possible for consumers to do themselves.

It is true that I wrote an endowment complaint letter on behalf of a family member and got a reply two weeks later admitting mis-selling. (The key is to be clear about the basis of the individual mis-selling claim and to include relevant detail.) But that is the exception. The rules look complicated; some firms (not all) routinely reject endowment complaints that they know the Ombudsman will uphold; and many people just won't feel capable of handling the procedures.

Some endowment complaint handlers say they achieve higher success rates than people who do their own endowment complaints. Not so, says the Ombudsman, there is no difference between the success rates of complaints sent to them directly or through a third party. We have more about professional complaint handlers.

Should you use a complaint handler? Some people will need to. It is a personal decision. If you're not sure, try reading the Which site and this one. Don't forget our endowments discussion board.

If you then feel confident, don't pay someone to do it for you. If you feel all at sea, here is an endowments claims company you could look at.

They do not offer free advice. They handle endowment complaints in return for a success fee.

Can we be stopped from using an endowment complaint handler?

Some insurers said they will not deal with complaints handling companies. Why? Allegedly they are doing this because the complaints handling process is so straightforward that no one needs them, they are just parasites. Or is this just spin?

This trend started with firms refusing to send the compensation cheque to the claims handler, insisting on it going directly to the policyholder. We have no problem with that.

Then one firm said they wouldn't correspond with claims handlers at all. After a bit of kerfuffle they admitted that, if their client insisted, they actually didn't have a choice.

The FSA has clarified its position on using endowment complaint handlers -

Appropriate and effective internal complaint handling procedures include procedures for firms to deal with third parties authorised by the consumer. We understand that good practice in this area would mean both accepting and handling complaints via third parties, and corresponding with such third parties as if they were the consumer, although this does not preclude firms from sending copies of correspondence to the consumer.

We are aware that some firms seek direct dealings with a consumer after a third party has been authorised by the consumer. Firms and consumers should be aware that there may be contractual issues and obligations between the consumer and the third-party, should the consumer then choose to deal directly with the firm. Firms should take care to avoid inducing the consumer to breach his/her contract with a third party.

We are also aware that some firms pay any compensation due, directly to the consumer rather than to the third party. In our view either route is responsible and adequate, but subject to any contractual restrictions between the parties concerned.

Our profiled endowments claim handlers

They offer third party claims assistance on all kinds of mis-selling complaints, including endowments. They say:

We are specialists in this field and we will take care of all the paperwork for you to make your life easier and give you the best possible chance of success.

Unlike many endowment claim handling companies, we will deal with mis-selling complaints against Independent Financial Advisers as well as
banks, building societies and insurance companies.

We operate on a 'no win, no fee' basis and we will refer your complaint to the Financial Ombudsman Service at no extra cost if the initial complaint is unsuccessful. For investment and endowment complaints our fee is just 20% of any compensation payanle, with a minimum fee of £250 for sucessful cases.

Not sure if you have a valid claim? Our initial consultation is FREE.

To contact them click here.

General advice

To get the best from an outside agency, write down your complaint at the outset.

Set out what your endowment complaint is, and what you want to achieve.

At the start, send them copies of all the written evidence you have.