The Endowment Claims Crisis
Endowment
claims hit 10,000 for year
The number of compensation
claims relating to mis-sold endowment mortgages has risen to
unprecedented levels. The Financial Services Compensation
Scheme, which processes claims against firms which are no longer
able to meet their liabilities, says it was inundated with
10,000 new claims in the half-year to the end of September - far
in excess of the forecast of 7,000 for the full year.
The FSCS now estimates that as many as 22,000 new endowment
claims will be received during the full 12 months for 2005-06.
Loretta Minghella, chief executive of FSCS admitted that the
number of claims submitted was "way beyond our expectations".
However, the rate for endowment claims which are upheld is
steady at 39 per cent whilst the average compensation payment
per claim has fallen from