Fresh push for endowment compensation
16 Feb 06
Chair of Treasury select committee wants action over mis-sold policies
The chairman of the House of Commons Treasury Select Committee has written to the Economic Secretary Ivan Lewis to demand action for the thousands of Scots left out of pocket after allegedly being mis-sold endowment mortgages.
John McFall wants to close the legal loophole by which Scottish solicitors who advised on such policies before 1 December 2001, when the Financial Services and Markets Act came into effect, are not subject to the Financial Ombudsman Service.
While the FOS has jurisdiction over banks, building societies, insurance companies and IFAs in complaints about what went on before 1 December 2001, complaints about Scottish solicitors from that period have to be dealt with by the Law Society of Scotland, which can award compensation only up to £1,000.
Mr McFall said he had received many letters about the issue and would continue to work with government departments and other bodies to find a solution. He described the situation as a "real injustice" affecting "thousands of Scots".
A Treasury spokesperson said the government was aware of the problem, but that it was very rare to introduce retrospective legislation.