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