Time-Barring Endowment Claims – Shortfalls, Criticism and the Affects
As more endowment providers impose time-bars on mis-selling complaints, millions of people could face mortgage shortfalls. The affects time-barring has on customers and mortgage providers is investigated.
Hale, Cheshire (PRWEB) June 15, 2006 -- The Prudential has become the latest endowment provider to time-bar mis-selling claims, despite previously claiming that such an action “doesn’t seem appropriate”.
As reported by the BBC, this announcement by Prudential means every major British endowment provider now imposes time bars on endowment complaints. Millions of people in the UK could face an endowment shortfall, including at least 110,000 Prudential customers.
The company’s decision to time-bar endowment claims has been criticised by many sectors. Ian Allison of endowment compensation specialists Brunel Franklin said: “Closing the window in such an arbitrary fashion is outrageous. Mis-sold endowments have detrimentally affected people’s lives and they should have proper and fair recourse.”
Consumer groups have also criticised companies for time-barring endowment claims, pointing out that many genuine mis-selling complaints could be ignored.
Despite the negative publicity, there are many reasons why the endowment providers have chosen to time-bar mis-selling claims.
The Prudential said introducing a time bar on mis-selling endowment claims would protect the financial well-being of other policyholders.
Nick Prettlejohn, Prudential chief executive, said: “We do not think that an open-ended complaints procedure for mortgage endowments is fair to our 4.5 million with-profits policyholders.”
Also, policy providers do not want endowment compensation claims to follow them for decades. It is unsurprising they would want to draw a line under the endowment mis-selling issue.
With some experts suggesting 70% of endowment policies face a shortfall, providers would clearly want to minimise compensation payments.
For the people affected by shortfalls in their endowment mortgage, time-barring will always seem unfair.
“It would be in consumers’ interests to outlaw any such time-bars that the life policy vendors are now trying to introduce,” said Mr. Allison.
Since potential shortfalls in endowment mortgages first came to light, Brunel Franklin has handled over 30,000 successful cases and won over £75 million in compensation for clients.
They can boast a 90% success rate, winning their clients compensation ranging from £3,000 to £48,000. Even clients that had previously been told they could not make a claim due to time barring have won compensation with Brunel Franklin (http://endowment.brunelfranklin.co.uk/).
While endowment providers are time-barring mis-selling complaints, there is no reason why their customers should think they cannot make a claim for shortfall compensation.
It takes just 60 seconds to see if you have a valid claim for endowment compensation. You can also contact Brunel Franklin’s endowment claims specialists on 0800 970 2222.
About Brunel Franklin
Brunel Franklin is a member of the Claims Standard Council and has years of experience of handling endowment compensation claims resulting from mis-selling. Thousands of people have won compensation due to making no-win, no-fee claims with Brunel Franklin. The level of endowment compensation depends on your circumstances and the size of the mortgage shortfall you are facing.
For more information see http://endowment.brunelfranklin.co.uk
Media Contact
Jon Gardner
t: 0114 296 7117
f: 0114 221 3797
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