Consumers who believe they may have been missold a mortgage endowment now have slightly longer to fi...
Consumers who believe they may have been missold a mortgage endowment now have slightly longer to file their complaint with the Financial Ombudsman.
A heavy campaign by the Consumers' Association has led the FSA to alter rules governing the length of time policyholders have to make a complaint.
Rather than needing to file a complaint within three years, the FSA says consumers can still file documents with the Ombudsman up to six months after they received their second 'red' re-projection warning of a shortfall on their required maturity value, if they believe they have been missold.
The CA started its campaign against the FSA's "time-bar" rule as those policyholders who first received a red re-projection letter in the spring of 2000 would have found their three years within which to file a complaint runs out in spring 2003.
Changes now mean only policyholders who receive a red letter - and not those receiving amber and green letters - should regard the mailing as notice of a potential loss.
A second red letter means they have six months to file a complaint if they deem it necessary.
John Tiner, managing director at the FSA, points out that clients should be made aware two red letters do not on their own signal a client has been missold.
The FSA says a claim should only be made if:
However, the Ombudsman can also extend that time period where a firm is slow in dealing with complaints.
John Tiner, FSA managing director, says:
"We have acted here on behalf of policyholders, without causing unjustified alarm or panicking consumers. These proposals will clarify the position for those that might have been affected and ensure that policyholders with complaints have enough time to pursue them."
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