Scottish Amicable who are part of the Prudential Group have been fined £750,000 by the industry regulator, the Financial Services Authority. The fine was due to endowment mis-selling, caused by a lack of sales systems and control functions during 2000.
In English, it would appear that the salespeople involved did not place enough weight on the fact there was a risk the endowment might not repay the mortgage. The company has set aside £11m for compensation and has said that anyone that purchased a policy from 29 April 1988 to 31 December 1998 will 'receive redress where appropriate'.
The Consumers Association is concerned that any redress paid will indirectly be paid from policyholder funds, as has apparently been the case with Prudential in the past. The CA have approached the Financial Services Authority regarding the issue but they are yet to comment.
Tip If you have a Scottish Amicable endowment that you believe was mis-sold, contact them to see if you have been included in their review. You can always contact us if you have problems.
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