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IFAs accuse CA of double standards on endowments

IFAs are accusing the Consumers&#39 Association of double standards with its endowment misselling campaign by ignoring its own advice which supported the products in its Which? publication dating back to 1988.

Last September, the CA and Which? launched an endowment action campaign claiming that up to five million consumers with an endowment mortgage had been missold and encouraging them to complain as they could be missing out on compensation.

Many in the industry believe this encourages speculative complaints from “bounty hunters”.

They also claim that the CA is ignoring the plus points of low-cost endowment mortgages which the CA outlined in its April 1988 issue of Which?

The consumer watchdog&#39s publication said: “The policy will probably be worth considerably more than the guaranteed amount” and “repayments on a low-cost endowment will now normally be slightly lower than for a repayment mortgage”.

Its verdict was: “Repayment and low-cost endowment mortgages are neck and neck as best buys.”

IFA Bob Riach says the CA suffers from the same lack of foresight as it is accusing the industry of and it is being pushed by popular consumer views rather than providing guidance.

Training company DWT compliance consultant David Williams says: “The CA is operating to complete double standards and with a total lack of integrity. It seems more concerned with selling copies of Which? than with protection.”

Which? principal researcher Teresa Fritz says: “The aims of the report is to inform people what is out there and, as the sale of the product is regulated, it is then up to the sales process to ensure the suitability of the specific product for the individual.”

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