How to file an endowment complaint

If you are facing a shortfall on your endowment mortgage and were mis-sold it, you could claim compensation.

But how do you go about this, and is it worth the effort?

There are several important issues to consider in this process, firstly - are you eligible to complain?

Secondly, how do you go about this and what do you do if your complaint is rejected.

The easiest option is to employ an endowment mortgage complaint firm to act on your behalf - but this is highly expensive and the firm might not take you on (full story).

Many independent experts recommend you go it alone, especially as the process is designed to be used by normal mortgage holders and not financial experts.

There are some simple steps to take in order to complain.

The first is to write a letter to the people that sold you your endowment mortgage.

This should be done as soon as you learn you have a cause for complaint. Time could be an issue here as complaints are thrown out if you wait too long (full story).

You will not be charged for making a complaint, and should outline why you think you are due compensation along with copies of any documents you think back up your case.

If you are not happy with the response you receive from the endowment provider, you can take the complaint to the Financial Ombudsman Service.

The ombudsman service is free and decides if a complaint is valid by looking at the facts of the case. It prefers that you complain yourself and not use a complaints firm as it "prefers to hear from you in your own words".

It adds: "Statistics show that there is no difference in the outcome - whether consumers bring their complaints direct to us themselves, or whether they use a claims management company . . . to bring the complaint on their behalf. In other words, we are no more or less likely to uphold a complaint referred to us through a claims management company."

The ombudsman will keep you informed about the progress of your complaint, but it currently takes six to nine months to resolve disputes - potentially longer - due to the volume of complaints it is receiving. Priority is given to people for who the outcome of the complaint is critical - for example if they are facing financial hardship or there are medical reasons.

If you make a successful complaint you could be due compensation.

This is normally worked out by calculating where you are now with your endowment mortgage and comparing it with where you would be if you had a repayment mortgage and making up the difference.

However, once you have received compensation, you cannot then it again later on if the position becomes worse and you are still left with a shortfall.

When the complaint is concluded you can do what you like with your endowment policy, there is no compulsion to sell it, cash it in, or keep it.