Should I Claim?

Looking at all the info on the net I'm even more confused. Maybe someone with more experience could give me some personal circumstances advice.

Back in 1992 I took out an endowment policy with Pearl Assurance (now AMP Pearl). The policy was what they called a "Homebuilder" policy.

At that time I had no mortgage, but was talked into starting an endowment policy now so that it could be attached to a mortgage in the future. The principle I liked as this means I could take out a 17 year endowment that would pay 20,000 at the end of the term (an amount that seemed huge at the time to me at 24).

I guess I feel I was miss sold because I was told that the policy was cheap because unlike some policy's that provided extra at maturity this was designed to only pay a maximum of 20,000 (pearl would keep any extra). He went on the tell me that the policy was design around pearl making 6% profits, something he thought was easy as they currently made twice that. Thus they could offer such a cheap policy to me.

Back in 2000 they started writing to me saying there was going to be a shortfall and I should take action. I even received a phone call trying to sell me another policy to take up the shortfall, I was annoyed and told them that I would not feel confident taking out a policy to top up one that I was told would easily produce 20,000. The conversation end quickly and they never rang again.

In 2001 they came up with something they called the AMP promise, this basically said that as long as they make 6% each year they will make up the short fall by adding 3,700 to my policy. They thought the 6% was achievable and thus I had no worries.

In 2003 they decide that 4% is more likely and thus even including the now only 3,600 AMP promise I'll be 2,032 short.

My main question are:

Thanks In Advance.

Something funny is happening with your message as it isn't indenting.

You definitely have a claim, though whether you are within the timescale allowed I don't know.

Your claim is quite simply this - your policy was presold. According to the FSA, and you should check out their website, a policy being sold before the person buying it had a mortgage was enough to justify a complaint of misselling.

It is very difficult to justify a claim on the basis of what you were told, as its almost impossible to prove that. Take great care filling out the questionnaire they send you, as some of the questions are very significant.

I hope this helps, but don't rely on it. Do your own research and if in doubt seek advice. Beware the people who will take a share of your compensation though!

Neb

You should write to the company first, telling them what you are complaining about. They should write back within 5 days saying they are looking into it. They should then reply properly within 30 days, or send a holding letter if they haven't been able to produce an answer by then.

If you are happy with their response then fine. If not, then contact the Financial Ombudsman Service on 020 7964 1000 and ask for a complaint form. When they've got this back they will adjudicate.

Re the AMP promise, I don't see why you should lose that if you lose the case. I assume the promise wasn't qualified in any way. So a promise is a promise.

Rob Graham

Just do it by yourself. But go through the process I told you. You won't have to pay anyone.

Rob Graham

In message , BionicBone writes

Had you saved enough for the deposit ion a house at that time?

Complete rubbish from the salesman here.

Yes

AMP Pearl

No, but you dont really need it. So long as you dont mind losing the life cover once your claim has been settled I wouldnt put another penny in it. Its a waste of money and it WONT achieve 6% growth per annum between now and maturity.

Dont confuse the bonus rates with growth rates., The bonus rate is based on the basic sum assured and previous bonuses, NOT the fund value.