Endowment deadline disaster

ABOUT 700,000 savers with mortgage endowments have missed the deadline for logging mis-selling complaints despite the ever-growing crisis, it emerged today.

The Treasury revealed the number in a submission to the Commons Treasury Select Committee which is probing the crisis. It means almost 10% of all endowment holders in Britain are essentially cut adrift.

Committee chairman John McFall said it was 'inexcusable' so many people may be facing potential shortfalls in their home loans but now have no recourse to compensation.

Life insurers are certain to come under yet more pressure as MPs have already slammed them for not doing enough to tell customers they have just six months to make a complaint once they receive a second letter warning of a severe shortfall in their savings plan.

The Financial Services Authority changed the rules this month to ensure companies gave more prominence to the deadline in their warning letters.