Sometimes you may be too late to make an endowment complaint. This is known as time barring.

The position on time barring of endowment complaints is fluid. So don't decide not to complain just because you feel you are time barred. The Ombudsman has set out the complicated rules here. The complication is ludicrous. Don't let it put you off. Complain anyway.

What follows is just an outline.

Under FSA rules, endowment customers had to complain within three years of receiving their first "red" letter, or within 6 months of receiving a second warning "red" or "amber" letter - whichever is later.

It is estimated that nearly 1 million people out of 8.5m mortgage endowment policyholders have lost a chance to complain because of time bars.

But now, companies must also tell customers the final date by which they can complain.

In addition, a company which wants to be able to time bar complaints must warn a policyholder 6 months before the time bar is due to become effective.

Some companies apply time bars, some do not.

• Legal & General told the Treasury Select Committee that they will not time bar complaints
   
• Prudential has decided not to apply time bars
   
• Standard Life says it only sent out red letters in 2003 so there is no question of a time bar yet anyway
   
• But time bars are still imposed by Eagle Star, Friends Provident, Royal & Sun Alliance, and Zurich
   
• Norwich Union said it had no intention of applying time bars. Then it changed its mind, writing to its 1.1m endowment customers telling them they would have only a year to complain.

Trouble ahead on time barring?

First, there is potential for confusion. If you have bought an L&G policy from one of its direct sales force you will not become time barred, but this doesn't necessarily apply if you have bought through an IFA. So the if intermediary wants to be able to apply a time bar, they will need to warn you.

Separately, a Senior Ombudsman has said that customers who have not complained but do have shortfalls are going to present a huge problem for the financial services industry.

So he is worried. Good. If you have found you are time barred, keep the pressure on by writing to your MP.

Some argue that it's too soon to be talking about under-performance if you have 10 years left on a 25 year policy. But if you are behind the game already, do you want to take the chance that things might get worse if you are with a time barring company, and lose your chance to complain?

June 2005: A legal challenge may be mounted against some endowment time-bars. Firms have to be able to prove how a time-bar letter was addressed, stamped and posted, but some providers cannot do this. There may be a legal challenge, but will not apply if you received warning letters but chose not to act on them.

Time bars and retirement

Have the FOS got it wrong on time barring complaints about endowment mortgages extending into retirement?

Previously on endowment time barring

The FSA told the BBC that they wanted concessions from the financial services industry for time-barred endowment complaints. The BBC reported that

More than five million people face a collective shortfall of around £30 billion. But only around half a million have complained. And some are now too late. They were first warned more than three years ago and have still done nothing.

Anna Bradley, a director of the Financial Services Authority (FSA) told BBC Radio 4's Money Box that they wanted concessions from the industry for these people.

"There are going to be a maximum of around 700,000 who might already have been timed-out. We sat down this week with the industry bodies and some of the key players to discuss what they can do to allow people to complain. We have the power to make them, but what we hope is they will implement a voluntary agreement and we understand that on the whole they are willing to consider this. If they do not do that we will consider our position."

The BBC found that HSBC, Legal & General, Prudential, and Standard Life were waiving the time-bar, but most of the smaller companies were imposing the three-year rule strictly and throwing out cases that were out of time.