"Our campaign is to help the 5m people that we believe could have been mis-sold endowments to get financial compensation."
The CA has set up a new website, www.endowmentaction.co.uk, that guides those who reckon they have a case through the complaints process. Visitors to the website can download a free factsheet and use a service that generates letters of complaint.
In the second round of a biennial process instigated by the Financial Services Authority two years ago, the Association of British Insurers said in May that more than 1.25 million people had so far received "re-projection" letters.
These letters, dubbed "traffic light" letters, tell homeowners whether their endowments are on track to repay their home loan.
Red letters say they are definitely not on track and orange ones say they may not be. Green ones say that all appears to be well. The number of red and orange letters is rising sharply as stockmarket returns continue to fall.
Last month, Eagle Star announced that 80 per cent of endowment mortgage holders faced shortfalls - 59 per cent of whom received red letters.
At the same time Allied Dunbar, part of Zurich Financial Services, said that 78 per cent of its policyholders faced shortfalls.
The ABI says it is uncomfortable with some of the assumptions made by the CA. A perfectly good complaints procedure is already in place, it says, and the campaign may result in a flood of "opportunistic" complaints that will clog the complaints process to the detriment of genuine cases.
"The figures are purely consumer research, not hard facts and we need to see the full report," said an ABI spokesman. "We already have an established complaints procedure in place." Successful complainants to the Financial Ombudsman Service have already been compensated. The Financial Services Authority says that nobody knows how many endowment mortgages were sold because providers do not differentiate between mortgage endowments and savings endowments. More than 300,000 people have so far been compensated with a total of £450m.
Firms disciplined for endowment mis-selling include Winterthur and Royal Scottish Assurance. Further disciplinary action is to be taken before the end of the year.
The FSA has so far rejected calls for a full-scale review, claiming the cost of doing so would far outweigh any benefits to homeowners. A projected shortfall does not mean the policy was mis-sold, it says.
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