Mis-sold an ISA - Who do I complain to?

Scooby_Man

I invested in a Scottish Widows ISA in 2006 because my mum works for them entitling me to a staff discount (1% fees instead of the 2.5% special high street rate at the time).

I noticed on the last statement that I had been charged 2.5% instead of 1%. Wrote to Scottish Widows and they said tough luck - the application form didn't state staff discount - yet it was their financial advisor who filled in the form (and was my mums friend who has now left!).

This is making my blood boil - they are blaming me for a mistake their financial advisor made.

Who to complain to?

RayWolfe

No, you were not mis-sold. There has been some sort of mistake perhaps but this is not a mis-selling in the general meaning of the term. It was suitable for you or it was not. That has nothing to do with annual charges.
You should never go for something just because of discount or tax saving.
Go back to SW and speak to their compliance department but don't start by saying you were mis-sold, start with the terms & conditions you signed up to.

dunstonh

Mis-selling relates to suitability of the contract. The adviser didnt tell you to take out the ISA so it wasnt a mis-sale.

Also, the discounted terms relate to execution only. In other words, you fill out the application and send it in. It is not the responsibility of the adviser.

I would have thought Scot Widows would correc the charge if you ask them to and provide proof that you are a staff member (your mum in this case). Although back in my Lloyds bank days with Black Horse Life/LTSB Life products, family members only got discount if they were financial dependents). You may wish to check if you were actually entitled to this discount.

Another consideration is that Scottish Widows, particulary the cut down bank version of the product, is not exactly a very good ISA provider. They have a couple of good funds but these tend not to be available on the bank version of the product. A small saving in intial commission to go into a pretty poor quality product is false economy.

missile

I would suggest you complain to the Financial Ombudsman Service https://www.financial-ombudsman.org.uk 0845 080 1800.

I had a dispute with Nationwide and despite numerous phone calls and several letters and going through their complaints procedure I got nowhere. One letter to FOS and I got a letter of apology within a week from NW, all my cash back plus payment for my inconvenience.

mystic_trev

missile wrote:

I would suggest you complain to the Financial Ombudsman Service https://www.financial-ombudsman.org.uk 0845 080 1800.

I had a dispute with Nationwide and despite numerous phone calls and several letters and going through their complaints procedure I got nowhere. One letter to FOS and I got a letter of apology within a week from NW, all my cash back plus payment for my inconvenience.

Missile - as has been explained by dunstonh, this is not a mis selling which the Ombudsman would look into, but a MISTAKE which is the OP's resposibility to resolve with the Bank.

missile

I know it is not a mis selling, I never said it was.

I am not sure that OP has a claim, but if he feels that SW made an error he should claim through them (as Ray Wolfe and Dunsworth said). However OP seems to have already tried that.

I suggested that he ought to contact FOS re SW error. As I said ....... it worked for me when NW denied their error.

dunstonh

I'm not sure it is an error. When I worked for Lloyds, only direct family members who were dependents (i.e. children upto age 18) got staff incentives. You used to have to put the staff reference number on the application and clearly mark it staff application to get the discount and they would tie it up to the staff member. Of course, it could have changed as that was Black Horse Life back then although it still works out of the Chatham office and its not really Scottish Widows as the bank products arent the normal SW retail product.

The FOS wouldnt consider the complaint at this stage as it hasnt gone through the complaints process.

This is making my blood boil - they are blaming me for a mistake their financial advisor made.

It has nothing to do with the tied rep at the branch. It is your error.

RayWolfe

I think this discussion has now become academic. The OP seems to have lost interest. Perhaps he/she would be more interested if we had all shouted that the bank was being OUTRAGEOUS!!!! ;-)

Scooby_Man

The financial advisor told me that comission would be 1% - it was the lowest high street comission for an investment ISA and I had to use my tax allowance. I wouldn't have gone for this product otherwise.

When I phoned SW head office they said they'd sort it and give me a refund (we're talking over £300). However, when they wrote to me they just said it wasn't put through as a staff case therefore no refund.

I still maintain I was sold something on the basis of a benefit, which I did not receive. Therefore the product was mis-sold.

Scooby_Man

RayWolfe wrote:

I think this discussion has now become academic. The OP seems to have lost interest. Perhaps he/she would be more interested if we had all shouted that the bank was being OUTRAGEOUS!!!! ;-)

Yes, I'll be making a point about losing interest on amount I was overcharged.

dunstonh

The financial advisor told me that comission would be 1% - it was the lowest high street comission for an investment ISA and I had to use my tax allowance. I wouldn't have gone for this product otherwise.

The tied rep shouldnt have told you anything apart from factual data. Apart from the fact that the commission point is wrong and of course charges do not equal commission and that 1% isnt the lowest, if the adviser gets involved, it ceases to be an execution only case and then needs to be processed as an advice case.

I still maintain I was sold something on the basis of a benefit, which I did not receive. Therefore the product was mis-sold.

Did you complete a factfind (about 8 sides of A4)? Did a risk analysis take place? Did you receive a suitability report detailing the recommendation?

If you did, it was processed as an advice case. If you didnt, then it would be processed as a staff case. Staff dont get full protection under FSA/FOS rules.

When I phoned SW head office they said they'd sort it and give me a refund (we're talking over £300). However, when they wrote to me they just said it wasn't put through as a staff case therefore no refund.

SW usually work on the basis that the person answering the phone takes the info but its passed on to someone else to do the work. So, whilst the first person probably thought you were a staff member, the one that actually looked into it probably checked the application, didnt see it marked as staff and probably did a check for you on the staff list and couldnt find you.

If it hasnt been processed as a staff case, then the tied rep should have completed execution only documentation and I bet that hasnt happened. However, complaining on that front would be pointless as they could turn round and void the sale and return your money plus interest. The growth in the ISA would be more than that.