 Millions of homeowners are facing endowment shortfalls |
UK banks and insurers have paid out a total of �2.2bn in compensation to victims of endowment mis-selling, the City watchdog has said. Compensation soared in the year to April, with �945m being paid out by firms, the Financial Services Authority (FSA) added.
The previous year, compensation payouts totalled �601m, the FSA added.
Consumer groups have estimated that 3.5 million UK households face endowment shortfalls of at least �5,000.
Endowment mortgages were hugely popular in the 1980s and 1990s.
Many borrowers were told their endowments were guaranteed to pay off their mortgages, but some of those promises have fallen well short. Mis-selling claims have followed.
In late 2004, the FSA said about �1.1bn had been paid out in compensation.
The latest figures are based on about 90% of firms in the insurance market.
One-Minute World News 
News services
E-mail this to a friend 
Printable version 
