Endowments That Just Don't Measure Up ; Mortgage Fund Shortfalls Are Making the News Again As the Deadline Looms for Borrowers to Claim Compensation

Summary

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Endowment mortgages are back in the headlines with a vengeance. Abbey has just been fined Pounds 800,000 for mishandling customer complaints about endowments, and regulators warn that millions of borrowers may soon lose their chance to get compensation for mis- selling.

The Financial Services Authority said Abbey had wrongly rejected 3,500 valid complaints between October 2001 and September 2003. The bank is now re-examining 50,000 cases going back to January 2000. Several other big banks which rejected the majority of endowment complaints put to them are expected to face fines and be forced into similar reviews.

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Extract

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Endowments That Just Don't Measure Up ; Mortgage Fund Shortfalls Are Making the News Again As the Deadline Looms for Borrowers to Claim Compensation

Meanwhile, some 5.3million borrowers who have been sent 'red letters' saying that their endowments are not growing fast enough to repay their debts are running out of time to claim compensation.

'Borrowers have to face the fact that they might have a problem,' says Ian...

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