The issue the Prudential conveniently ignores is one of trust. If you were missold, why trust the company that conned you in the first place ?
"Endowment payout firms under fire
Prudential is to stop making payments to agencies acting as go-betweens in endowment mis-selling cases, and will send compensation directly to clients.
The insurer said it was alarmed at the size of commission agencies are taking from clients' compensation payments.
Agencies typically take 25% of compensation payouts, but in some cases this has risen to 50%, Prudential said.
This was "unfair" as customers could achieve the same results by complaining direct, the insurer added.
Direct payment
Prudential's decision will take effect immediately. Anyone who has employed an agency to help manage an endowment mis-selling claim with Prudential will now be paid directly.
We are concerned that some customers may not know that they have the option of dealing with us direct and that this will cost them nothing Mark Wood, Prudential chief executive
It will then be up to the individual to pay the agency for their work.
Prudential emphasised that their move did not mean that they have ceased dealing with agencies, just that they will not make payments to them.
In recent times, agencies offering to act as a go-between endowment mis-selling complainants and endowment providers have raised their profile.
Usually operating on a no-win no-fee basis, these agencies handle all communications and negotiations between the complainant and the endowment provider.
However, in return they take a slice of any compensation secured.
There are no industry figures for the number of complaints being handled by agencies.
But Prudential has estimated that it has paid out £1.7m in compensation to the clients of these firms in the past year.
A quarter of this £1.7m is taken in agency commission.
ENDOWMENT FACTS
Eight out of 10 endowment mortgage holders are facing a shortfall Average shortfall across policies is £5,500, adding up to £40bn overall
Six in 10 policyholders could have been victims of mis-selling
2013 will be the peak year for endowments reaching maturity"We are concerned that some customers may not know that they have the option of dealing with us direct and that this will cost them nothing," said Mark Wood, Prudential chief executive.
"If a customer has been mis-sold an endowment... we firmly believe they should receive 100% of the compensation."
Endowment woe
Millions are facing shortfalls on their endowments, an investment product sold heavily in the 1980s.
Many borrowers were told their endowments were guaranteed to pay off their mortgages, but some of those promises have fallen well short.
Many UK homeowners who are relying on an endowment to pay of their mortgage have received warnings alerting them to potential shortfalls.
Under existing rules, people who believe they have been mis-sold an endowment must complain to the firm that advised them.
If they are unhappy with the outcome of this initial complaint, they can then approach the Financial Ombudsman Service (FOS).
If you are facing an endowment shortfall, you can obtain a free factsheet from the Financial Services Authority (FSA) by calling 0845
456 1555.Story from BBC NEWS: