Britannia equity bond help please

kawka

A rep from Bristol and west advised us to invest some savings in a 5 year equity bond scheme. We were told that we would get our initial outlay back plus 8% minimum interest. However at the end of the 5 year qualifying period we have rec'd notification that we will now be getting our money back but with no interest. I think we were given bad advice, has anyone else come across this policy and have they claimed compensation? The policy is called guaranteed Equity Bond 6 year issue 7. This is now with Britannia as they have taken over Bristol and West. It was not a monthly saving scheme, I had to pay the agreed amount up front.

Thanks

dunstonh

We were told that we would get our initial outlay back plus 8% minimum interest. However at the end of the 5 year qualifying period we have rec'd notification that we will now be getting our money back but with no interest.

They would have given you an illustration at the outset which lays out the terms. If 8% was due at any point, then it would be mentioned in there.

I think we were given bad advice, has anyone else come across this policy and have they claimed compensation?

On what grounds? The fact it is a poor product and you have not made any money is not grounds for complaint. Remember you saw a Bristol and west salesman who sold you a Bristol and West product. What were you expecting other than a Bristol and West product?

IF, the documentation you have says you were guaranteed to get x amount at the end and you havent got that amount, then you have grounds for complaint.

ReportInvestor

Hi kawka & welcome to the site

Just a thought :idea:.

Did you, at the same time, also open an account with B&W that paid 8% interest for 1 year & closed 4 years ago?

This was [and is ] a very common bank/bs sales pitch. Offer a poor 5 year investment product combined with a headline grabbing 8% rate on other money that just lasted for 1 year.

kawka might be confusing the 1 year savings account and the 5 year guaranteed capital stock market product.

kawka

We opened no other account.
The main argument is that the Bristol & West asked us to see them to help us. If they had not contacted us we would have left the money alone in a normal account.

ReportInvestor

Then it's as dh says.

If the terms and conditions mention 8% minimum then you are entitled to 8% minimum.

If B&W employed someone who intentionally misled you in order to close a sale, that would be very serious and you should follow it up with Britannia.

"The main argument" you mention (B&W contacting you) is irrelevant.

The important thing is whether proper sales procedures were followed, with you explaining your financial circumstances and aims to B&W, B&W explaining the product clearly to you and B&W properly matching the product with an accurate perception of you circumstances and aims.

It's not a great product, but nor is it inappropriate for most people given the capital guarantee, so proving misselling will be difficult.

Either you were lied to or not. But that's different from "bad advice".

kawka

Hope we can find some old documentation otherwise I guess it's just down to what we were led to believe.