A new group has been set up in Scotland to lobby for a change in the way endowment compensation is paid when the policy was bought from a solicitor, was mis-sold, and now faces a shortfall.

Unlike in England, where all policies are bought from financial companies regulated by the FSA, Scots were able to buy policies from solicitors up until 2001 - leaving victims of mis-selling outside the normal FSA compensation process.

Despite some people facing shortfalls of up to £25,000, existing rules covering policies bought before 2001 allow a maximum compensation payment of just £1,000 for receiving ‘inadequate professional service’.

The founder of the action group, Gail McEwan of Renfrewshire, received compensation of just £500 for a shortfall estimated at £7,000 although she later received an additional £700 after the ombudsman ruled her initial complaint had been mishandled. Even this scant compensation was only paid as the result of a 4 year battle for redress.

More than a dozen people have already joined the group, and it has attracted support from Sandra Osborne MP who is hoping to have the matter debated in Westminster.

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