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Abbey Endowment Mortgages
27-09-2006, 01:36 PM
Post: #1
Abbey Endowment Mortgages

I recently read that Abbey was fined £1m for mis-selling endowment mortgages between 1995 and 1999 which subsequently under-performed.

We took out such a mortgage with Abbey in 1996 and there will be a considerable shortfall.

Given the fine, does anyone know if I would have any legal come-back against Abbey to recover the shortfall?

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27-09-2006, 02:03 PM
Post: #2
Abbey Endowment Mortgages
I think you have a time limit SF. You might have to ask an independant adviser if you can complain - or if the time for your case has expired.

I work for a large corporation, and they have had many complaints over their endowments. Head Office will ask to see the clients file, and if they feel that the risks werent properly explained to the client at the time the mortgage was taken out - they pay them compensation. They do have to look into the case thoroughly though.

I was missold an endowment by HSBC way back when. My mortgage was only £38k, and after 10 years they said i would have a shortfall of £22k. It was ridiculous and scary. I sold up though and paid off the mortgage, and then went down the repayment route. I should really of sued their a*se, but back then (about 5 years ago) i didnt know they had mis sold anything and that there was a big hoohah about endowments.

I'm not perfect, but im so close it scares me
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27-09-2006, 03:29 PM
Post: #3
Abbey Endowment Mortgages
YOu have a come back, but as Bons says there is a time limit. We 'sued' Legal and General a few years ago and got a nice sum back off them for being mis sold our endowment. We then had to change to a repayment mortgage.
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28-09-2006, 02:29 PM
Post: #4
Abbey Endowment Mortgages
Do you reall what 'mis-sold' meant in your case? From what I remember, Abbey pushed their endowment plan and made it look tantalisingly as if it would pay more than the amount owed so we'd make a profit. But presumably they quoted accurate although optimistic returns, so I'm unsure if it would constitute mis-selling.

On the other hand if they were fined, and assuming they had an across the board policy for providing info about endowment mortgages, it looks like I might have a case unless my time limit has run out - I suppose it hinges on what mis-selling actually is.

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28-09-2006, 02:37 PM (This post was last modified: 28-09-2006 02:41 PM by mikado.)
Post: #5
Abbey Endowment Mortgages
Did they warn you that past performance is no guarantee of future performance? Or that it might be possible for your endowment to fail to cover your loan? Did they mention that there was a risk involved, and that endowments attract charges that reduce the short-term value?

See also here:
http://www.fsa.gov.uk/consumer/01_WARNIN...wment.html

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28-09-2006, 04:22 PM
Post: #6
Abbey Endowment Mortgages
This might be able to help too http://forums.moneysavingexpert.com/show...l?t=140557
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28-09-2006, 04:42 PM
Post: #7
Abbey Endowment Mortgages
I will be honest here and say that I pretty mich left it to Mr B to do the 'suing' bit - I just spent the money when it came in...but I do think it was along the lines that they didn't warn us as young first time buyers that this policy might leave us with a shortfall, and that they sold it to two 19yr olds as the best thing to do for the future.

Of course by the time we sued we were well into our 30's and not quite so green about all things financial..
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