Endowment Policy Compensation
Do you own an endowment policy or any other asset backed financial product?
Is it being used to repay your mortgage? If so you are probably becoming
increasingly concerned about whether or not it is going to produce sufficient
capital to repay your mortgage when it matures.
The organisation, which regulates the financial services industry nowadays, the
Financial Services Authority (FSA), has realised that potentially millions of
homeowners, who are relying on their endowments to repay their mortgage loans,
are substantially at risk. The FSA has now introduced a compensation award scheme
to help resolve what has now been dubbed the ‘Endowment Mis-selling Scandal'.
CPH Financial Advisory Services has successfully introduced a unique complaints
handling procedure and have become one of the leading independent professional
advisers in this field (Financial Mail, Mail on Sunday, Pages 18 & 19, June
20th 2004). The “Do-It-Yourself” approach suggested by some organisations over
simplifies the situation and we believe encourages you to take needless risks,
which may result in your case facing unnecessary rejection. You can only make one
complaint so make sure it is as successful as possible by using the experience of
CPH Financial Advisory Services.
It is important that you become conversant with the following three words, which
are used regularly in the context of the Endowment Mis-selling Scandal:
- Disadvantaged
- Mis-sold
- Redress
As most endowments are worth less than they should at this stage of their term,
it stands to reason many people have been disadvantaged financially. However, it
is far more important to establish whether or not you were advised correctly,
according to the Rules of the Regulator, at the time you were recommended to go
ahead with your endowment policy (i.e. were you mis-sold?) and that the policy
was a suitable recommendation for you and you were made aware of and agreed to
take the risks involved.
The simple answer is that if you have been both financially disadvantaged and
mis-sold you are entitled to redress. This is the aforementioned compensation
package that the FSA has introduced, which could amount to many thousands of
pounds. This will be paid as a lump sum on the date your claim has been successfully
negotiated.
If you are an innocent victim it is in your interest to spend time investing in
your own financial well being by becoming acquainted with all aspects of the
endowment mis-selling scandal. Seek advice from the consultants at CPH Financial
Advisory Services. We can advise on the most appropriate steps to take bearing in
mind your personal circumstances.
The approach of using a non-guaranteed endowment policy or indeed any other stock
market backed investment to repay what is probably your largest ever debt, is a UK
only phenomenon. The alternative, the repayment mortgage, contains a guarantee that
your mortgage will be paid in full at the end of the term. Any suggestion to forsake
this guarantee and link policies to the stock markets was bound to cause serious
financial difficulties whenever markets experienced a really serious and prolonged
downturn.
Please remember that we are dealing with a set of complex issues, which will not only
have an impact on your endowment but also your mortgage and your life cover programme.
Take your time to consider matters and the implications these could have on your
financial situation. Your home is undoubtedly at risk, as the mortgage debt has to be
repaid whatever your endowment produces when it finally matures as you have to make
good the difference from other sources of capital, if available.
Your Endowment
Whilst your first reaction may be to surrender/sell your policy (indeed this may have
happened already) this may not necessarily be the best course of action. It is better
to seek professional advice before taking any action. Fortunately, whatever action you
have already taken does not impact the redress process. However, if you have still not
made a decision on the fate of your endowment, we invite you to speak to our consultants
at CPH Financial Advisory Services as we are authorised and regulated by the FSA to
advise you independently on the most suitable way forward, bearing in mind all your
circumstances and your view of the uncertainty of stock market linked products.
Your Mortgage
Whilst your present mortgage provider may impose penalties to enable you to switch to a
repayment mortgage, it is possible to have these refunded as part of the redress process.
This could even apply if you have changed mortgage providers since you took out your endowment.
Your Life Cover
With all the changes you are contemplating, (e.g. if your endowment is sold/surrendered
and you are switching to a repayment mortgage) it is possible you will need to adjust your
life cover programme to replace the life cover element within your endowment which will
now be lost. Our advisers at CPH will ensure your life cover quote is on the guaranteed
least cost basis, as this is not a quality issue.
CPH Financial Advisory Services' in-house endowment experts will review your situation and
will offer advice on your potential endowment claim. The link below will take you to the
review policy page. Complete and submit the form and one of our advisers will telephone
you within three days. This service is free and without obligation.
Have I been mis-sold my endowment policy?
CPH Financial Advisory Services
The Bath Master's House
Davenport Street
Macclesfield
Cheshire
SK10 1JF
Click here to email us |
Help line:-
0800 801 487 (Existing clients only)
Telephone:-
01625 433601
Fax:- 01625 434570
Office Hours:
9.30a.m. - 5.00p.m. |
Legal Disclaimer
In the preparation of this site every effort has been made to offer the most current,
correct and clearly expressed information possible. Nonetheless, inadvertent errors can
occur and applicable laws, rules and regulations often change. Further, the information
contained herein is intended to afford general guidelines on matters of interest. The
application and impact of laws can vary widely, however, from case to case, based upon
the specific or unique facts involved. Accordingly, the information in this site is not
intended to serve as legal, accounting, tax or financial advice. Users are encouraged to
consult with CPH Financial Advisory Services professional advisers for advice concerning
specific matters before making any decision and CPH Financial Advisory Services disclaims
any responsibility for positions taken by individuals for any misunderstanding upon the
part of users. Not all products/services are regulated by the Financial Services Authority
(F.S.A.) and in particular the complaint handling process described above. Claims are handled
by CPH Financial Advisory Services of the Bath Master's House, Davenport Street, Macclesfield,
Cheshire, SK10 1JE The Principal of which is Mr. Michael J. Cooper.
|