View more on these topics

Endowment claptrap

I would like to respond to the article by Andrew Verity in Money Marketing&#39s December 11, 2003 issue.

I understand, agree and sympathise with the significant number of consumers who have been missold endowment plans in support of their mortgages but I am appalled at the standard of journalism being used in this matter.

My understanding is that the average mortgage duration is something in the order of six years, having spoken to a number of mainstream lenders.

This means that the vast majority of consumers with endowment plans will or should have reviewed their endowment plans already in conjunction with a normal house move. They will have no excuse if they have not reviewed their plans as there has been overwhelming media commentary on this matter.

Andrew, in his endeavour to make a more interesting story, has referred to a “hard-up lender” which might not extend the mortgage term and consequently repossess the unfortunate client. What claptrap.

I have spent over 25 years in this industry and I have never heard of either a hard-up lender or a lender not being prepared to extend a mortgage term and I have no direct experience of a lender repossessing a property for any reason other than non-payment of mortgage instalments.

This is one more example of a journalist endeavouring to make a story rather than reporting on it.

Please can you write about this in a more balanced way? It will help to ensure those people most seriously affected are redressed properly and the rest of the policyholders are not adversely affected because their insurance companies are damaged by spurious claims.

Paul Wreford

Director,

Burgess Wreford

Recommended

FSA in talks with Standard over financial strength

The FSA has issued a statement confirming it is in discussions with Standard Life about its solvency under new life office accounting rules due to take effect later this year. The statement says there has been a high level of engagement between the regulator and Standard which is close to a conclusion.

Pitfalls for small insurance brokers in FSA authorisation

Small insurance brokers need to be careful when completing their applications to become authorised by the FSA as the compliance burden is more onerous than it first appears, says insurance law firm Reynolds Porter Chamberlain. According to RPC, although the new high street firms application pack is “relatively straightforward” to complete for small firms with […]

Consumer champion Sheila McKechnie dies at 55

Consumers&#39 Association director Dame Sheila McKechnie has died after a long illness.McKechnie, who died last week aged 55, had lived with cancer since 1997 but maintained an active role as director of the CA until last November.She was an outspoken campaigner who took the side of consumers in many confrontations with the financial services business.She […]

No reason to panic over Standard&#39s solvency says McPhail

It is premature to suggest there is a solvency problem at Standard Life despite several reports today according to Hargreaves Lansdown head of pensions research Tom McPhail. He says new solvency guidelines from the FSA are only now starting to be applied to the life insurance sector, and it is too early to tell how […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com