The industry regulator, the Financial Services Authority is making investigations with endowment companies to make sure consumer complaints are being handled properly.
There is speculation that where consumers have been mis-sold endowments by companies, complaints and the consumers making the complaints are not being treated properly. This includes companies that have admitted to mis-selling and agreeing compensation payments. However, even though these companies may have technically agreed, actually paying out is another story.
The policy of the FSA is to discipline any company found to be dragging their heels and not dealing with people in the correct manner. The last company to be fined was Royal & Sun Alliance to the tune of £950,000 - some incentive to get it right!
Our View:
There have been many thousands of complaints made to endowment companies over the past few years and most of their complaints handling systems are under strain.
In line with the rules of the Financial Services Authority, once a complaint is received, it must be investigated and a final response issued to the complainant within 8 weeks. Due to the volume of complaints, many companies have asked the regulator for an extension to the 8 weeks and some of them are taking around 16 weeks.
Consumers need to give some leeway to companies that are investigating complaints but they must not allow themselves to be fobbed off. If you think you are being, you should contact a senior manager at the company. If that doesn't work, either contact the Financial Services Authority consumer helpdesk or us. Their number is 0845 606 1234.