Any action on the underperforming endowment products?

Has anyone taken a complaint to the FSO or to the courts about the mis-selling of endowments?

A friend of mine was expecting about €250k, but the latest forecast for his with profits endowment is about €50k after contributing €1,000 a year since 1989. It's due to mature in 2023.

I thought that the shortfalls on mortgage linked endowments was in the order of 20% or 30%. But it surprises me that in this case it's about 80%.

Brendan

What is the forecast based on?

At 4% annual growth I estimate 60k after 30 years

How high were interest rates in Ireland in 1989? Close to double digits? The expected return of a With Profit fund at that time would have been higher. Running calculations, to get €250,000 back from €1,000 a year for 34 years would need an annual return of 10.08%. That may be been achievable in a high interest market but as rates decreased, so did the expected return on the With Profits fund. If your friend wanted to achieve his €250,000 target, he needed to increase his contributions to compensate the lower expected return.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)

No point Boss. 6 year statute of limitations.

Duke - I remember a few years ago there was talk of relaxing the Statute of Limitations for certain cases where the sale may have been over six years ago, but the policy itself was still in force and therefore the grievance is ongoing...endowment policy continuing to take your money but not coming within an ass's roar of what you were told to expect, whole of life policy review rendering it impossible for you to continue paying even though you were sold it as "whole of life" cover etc. https://www.independent.ie/business...-able-to-investigate-old-claims-31102224.html

Did this ever come to pass? My focus was elswehere for a few years...

@LDFerguson
Yes, some changes, but has to have occurred since 1 Jan 2002. Good summary here
https://www.algoodbody.com/insights...ts-to-the-financial-services-ombudsman-extend

In fairness he surely can't have been expecting that in recent years, I'm sure there will have been many letters at this stage saying telling him what is happening and that the premium needs to be increased to stay on target. Even when I left the bank nearly 10 yrs ago most people had changed their mortgage to capital and interest as the endowments were clearly not going to pay enough to clear them, mind you they were mainly low cost endowments and not the with profits kind. Numerous letter went out to customers advising them of the situation.

Those that did then keep on the policy separately knew full well it wasn't going to make what was originally forecast.