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More endowment firms look set to introduce time barring |
Last October Norwich Union began writing to customers warning of a 12 month time limit. This month Standard Life and Axa will begin warning customers that they have a limited time in which they can complain about being missold their endowment.
The Financial Services Authority (FSA) states that three years after the first red letter warning has been sent to the client advising that the endowment has a high risk of not meeting its target an insurer may disregard a case for mis-selling.
Hundreds of thousands all these 'red' warning letters were sent out in early 2003 leaving many policyholders now running the risk of missing the deadline.
This time barring has also seen the number of claims for the firms imposing a deadline rise sharply adding more pressure to an already overloaded system.
Other firms now introducing time barring include Royal & SunAlliance, Allied Dunbar/Eagle Star, Friends Provident, Pearl/NPI/London Life, Axa and Scottish Widows.
May 8, 2005
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Lloyds TSB plc has allocated a further £110 million to compensate endowment policyholders. This is in addition to the £250 million which was set aside to pay compensation in 2003.
Lloyds TSB plc to impose a time bar on endowment policyholders that were mis-sold their policies in order to prevent them from making a claim
Reported in the Daily Telegraph December 2004
Mortgage endowment policyholders are collectively going to face a shortfall estimated at £ 40 billion
The average amount of compensation where a policy has been mis-sold is estimated to be £3,000
Source ABI (The Association of British Insurers) 2006
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