More pressure over Scottish endowments
Complaints and Compensation Claims, Thursday, February 16th, 2006Pressure is rising on the government to improve compensation levels for Scots who bought endowment policies from solicitors and who are now facing shortfalls.
The chairman of the Treasury select committee, John McFall, has written to economic secretary Ivan Lewis asking for action to close a loophole that could leave thousands of Scots facing shortfalls.
Prior to 2001, Scots could take out endowment mortgages through their solicitors as well as through banks and financial advisors, but policies bought this way are not covered by the same compensation rules.
Despite potential shortfalls being just as large as with conventially bought policies, the maximum compensation available through the Law Society of Scotland is just £1000, compared to the full compensation available to those who were mis-sold policies by firms regulated by the Financial Services Authority.
News of Mr McFall’s letter came after reports that a new action group has been set up to lobby for better compensation procedures.
Follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
July 11th, 2006 at 3:19 pm
my father and brother bought my fathers ex-council house together as my father was to old to get a mortgage.I was left my fathers half in his will but brother refused to abide by this and evicted me from the property the fact that my father didn`t know there was going to a shortfall and my brother hoodwinked him my father was always under the impression that he could do what he wanted with his share and the fact that the mortgage was missold to him what status does that leave the title deeds is it a valid deed or not