Compensation from the Abbey
It has also stated that between 42-46,000 mortgage endowment and 3-4,000 other customers may be due compensation currently estimated to be between £120 million and £160 million.
The Consumers Association (CA) welcomed the FSA’s move but claims this is just the tip of the iceberg. Sheila McKechnie, director of the CA, said: “We are, of course, delighted that up to 46,000 consumers will be getting the compensation they deserve. But the announcement by the FSA to fine Abbey Life £1 million and to compensate the victims, represents just a small step along the road to ensure the endowment mis-selling scandal is effectively dealt with. We estimate that up to five million endowment holders could have been mis-sold.”