MP seeks justice for endowment victims

PAUL FLYNN, the Labour MP for Newport West, has launched a campaign against endowment-complaints handling companies, tabling an Early Day Motion (EDM) in the Commons last week that condemned them for offering bad value to customers, writes James Daley.

The EDM has received the support of 29 MPs, including Vince Cable, Lib Dem spokesman on Treasury affairs. In it, Flynn names and accuses one agency, Endowment Justice, after one of its representatives failed to mention its charges in a free broadcast. Endowment Justice charges more than 20 per cent of any compensation that it secures on a no-win-no-fee basis.

However, on his website, Flynn warns: "Some companies offering to handle complaints for people who believe that they were mis-sold endowment mortgages are charging fees of up to 40 per cent of the compensation recovered. Complaints that should only cost the price of a stamp. The companies argue that the complaints process is too complicated and requires financial and legal expertise. However, customers still have to fill in the same forms that they would if making an individual complaint," his website warns.

"Paying a percentage of the compensation is a waste of money as free advice is available from various sources, including the Financial Services Authority and the Consumers' Association, which offer a step-by-step guide to making a complaint."

Endowment Justice vehemently rejects Mr Flynn's criticism, saying that it provides a valuable service: "We firmly believe that our charges are reasonable.

"We offer advice to consumers wishing to pursue a DIY claim on our website, and a free assessment to determine whether the consumer's claim is valid.... They are quite within their rights to use this information to pursue a claim themselves. We are very saddened by this attack."