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?

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.