Complaints about Mortgage Endowment Policies

The Financial Ombudsman Service is currently receiving a large number of complaints regarding mortgage endowment policies which have offered a poor return for investors. A mortgage endowment policy is supposed to have a separate investment policy which enables the mortgage capital  to be paid off at the end of the term. However, many of these endowment policies sold in the 1980s have given very bad value.

The Complaints Procedure

The Financial Ombudsman Service has 500 specialist staff for dealing with complaints. They seek to resolve issues fairly and quickly, without recourse to a court of law. Their decisions are based on written information given by each party. Often they will seek to act as mediators - getting both sides to agree on a compromise decision, without the necessity of a lengthy detailed investigation.

Before bringing a complaint to the Financial Ombudsman Service, it is important to try and resolve it directly with the company. Complaints to the FOS should be only after other avenues have failed.

Bringing a Complaint to Financial Ombudsman Service

The first step is the adjudicators will look at the evidence and taking advice from the financial ombudsmen where appropriate. The resolution is then offered to both sides. If either side reject the decision the case can be referred to the ombudsman for formal investigation. However, one party would need to display  significant errors in the initial judgement.

The Ombudsman would then review the case, usually working in close contact with the initial ombudsman, they will then come to a final conclusion which has to be accepted.

if you accept the Ombudsman’s decision then the firm is bound by the decision. If you reject the ombudsman’s decision, then you would have to resort to taking the firm to court.

Note: Going through an Ombudsman will not suspend any maximum time period of bringing a court case.

See also: How to Write a Letter of complaint

Financial Ombudsman Service
South Quay Plaza
183 Marsh Wall
London
E14 9SR