Up to £50 billion could be claimed by mis-sold policy holders

It appears that millions of mortgage endowment policyholders who are informed that they not eligible to claim compensation for mis-selling could, via the court, still be entitled to claim the sum of £50 billion.

An approximate 5 million people are entitled to compensation according to Which? Yet only a relatively small number of these individuals have made a claim to date. Despite the fact that under the present rules the majority will find themselves time-barred come next year.

In the first instance claimants register their complaint to the adviser or company who initially sold them the policy. If this claim is rejected, or they are dissatisfied with the treatment received; they can then seek advice from the Financial Ombudsman.

2012 will see the matter brought to the forefront, as we begin to witness the consequences as the first group of endowment mortgages come to maturity .These policies were taken out at the end of the 1980s and start of the 1990s.

A prediction by an independent insurance expert estimates the shortfalls could amount to a staggering £50 billion.

Jul 4, 2005
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