The Abbey has released figures for expected claims over advice given on mortgage endowments. They are expecting a series of compensation claims and a large fine from the Financial Services Authority.
At the start of this year, letters were sent out to chief executives, asking them to look at the handling of mortgage endowment complaints, and made provision for any that include misselling.
The company have put aside £154 million from its 2004 budget for liabilities, and £50 million from 2003.
Our view
Regrettably, there are many complaints made on endowments, some are valid and legitimate, others are not.
Free Factsheets: Endowment Shortfall - Don't Panic and Complaints - Putting Your Case Forward.