Endowment Time Barring Complaints
   
When the UK Government and Financial Services Authority agreed the rules governing the endowment compensation claims processes, it was decide to provide a time limit for policy holders to make claims. So long as the policy providing company has gone through a pre-defined process of issuing warnings by letter, then it was agreed that a time barr could be implemented to block open ended future claims.

Is that fair I hear you ask, probably not, who should say that you have only got a limited window of opportunity to make a claim for a product that has been mis sold to you! 

Given this legislation, you may find that sometimes you are told that you are to late to make an endowment complaint. This is known as endowment time barring.

The position on time barring of endowment complaints is still up in the air. Some policy providers are applying barr’s and some are choosing not to, so don't decide not to complain just because you think that you may be time barred. The Ombudsman has set out the rules, for full details of the rules - mortgage endowment complaints - time limit changes.

The complications are crazy, so don't be put off - Complain anyway.

What follows is just an outline of the details:

Under the FSA rules, endowment holders were told that they had to complain within three years of receiving their first warning letter, or within 6 months of receiving a second warning “red” or “amber” letter - whichever is comes last.

It is estimated that getting on for 1 million people out of 6.3m mortgage endowment policyholders have lost their chance to complain because of time bars. But we at Moneymatchmaker.com are not sure we agree!!!

Now companies must also tell customers the final date by which they can complain and we are not sure that many elements of the claims process are being adhered to correctly, so we say, let us have your policy details and let’s see what we can do for you.

In order to prove that the legislation has been followed, firms have to be able to prove how a time-bar letter was addressed, stamped and posted, but some providers cannot do this. This may give you the here may be a legal challenge, but will not apply if you received warning letters but chose not to act on them.

If a policy provider company wants to be able to time bar complaints, it must warn it’s policyholder, 6 months before the time bar is due to take effect.

For your information here is what some of the companies have said:

• 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
   
• Time bars are still imposed by Eagle Star, Friends Provident, Royal & Sun Alliance, and Zurich – Don’t be put off Claim Compensation Anyway!
   
• 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 with Endowment time barring?

There is possible 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 Independent Financial Adviser. So if the intermediary wants to be able to apply a time bar, they will need to warn you first.

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. Yes - If you have found you are time barred, keep the pressure on by making a claim through as and writing to your MP.

Is it too early to worry if you still have a long time left on your policy?

One could argue that it's too soon to be talking about under-performance, if you have 10 years left on a 25 year endowment policy. But if you are behind now, do you want to take the chance that things might get worse? You might be time barred and lose your chance to complain?

In June 2005: A legal challenge may be mounted against some endowment time-bars.

What do you do next...

To receive your FREE, No Hassle assessment and to see how easy we can make your endowment compensation claim happen, simply:

•Fill in our Online form here

We'll take you through the claims process and providing that you are eligible and if you choose to go ahead, we'll do the rest for you!
Don't delay making your endowment compensation claim, the clock is ticking and we do not want you to miss your chance!