Mis-sold mortgage cases get more time

The financial services authority has urged anyone who thinks they were mis-sold an endowment mortgage to complain now or risk missing the deadline.

The regulator yesterday relaxed the time limit in which complaints of mis-selling can be made but has warned that, in some cases, policyholders may only have a few days left to lodge a claim.

The financial ombudsman service will only consider endowment complaints that are received within three years of the policyholder first becoming aware of the problem. This is deemed to be when they received their first 'red' letter warning they will almost certainly face a shortfall.

The first round of letters went out in early 2000, meaning the deadline for thousands of potential complaints is fast approaching. However policyholders who have yet to receive a second red letter have been given a little breathing space. The deadline for complaints in these cases will be extended to six months from when the second letter is received.

Any policyholder making a claim must be able to show they were both badly advised, and they suffered financial loss as a result.

The Consumers' Association welcomed the deadline extension. Director Sheila McKechnie said consumers could not afford to wait any longer and that failure to act could leave people without compensation.