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Warning for people using Hargreaves Lansdown
dllive
Posts: 1,375 Forumite
Hi,
I am invetsed in a few funds within my Hargreaves account. One fund charges 5% fee, but HL discounts this to 0%. However, I found out by chance after speaking to someone at HL that the fund had 'soft closed'. This means that the fund still accepts payments, but the discount no longer applies, so Im being charged the full 5%! HL has never notified me that the fund had soft closed, and my monthly deposits have been charged 5%.
This is obviously of great concern - if I hadnt have found this out then I could have unwittingly been paying 5% without knowing it!
I think its very very poor form of HL not to notify when a fund has soft closed. They know which of their customers are invested in which funds, so should email a warning that the fund has soft closed and so will be costing the full fee. I've really lost confidence in HL becasue of this. Has anyone else had experience of this?
I am invetsed in a few funds within my Hargreaves account. One fund charges 5% fee, but HL discounts this to 0%. However, I found out by chance after speaking to someone at HL that the fund had 'soft closed'. This means that the fund still accepts payments, but the discount no longer applies, so Im being charged the full 5%! HL has never notified me that the fund had soft closed, and my monthly deposits have been charged 5%.
This is obviously of great concern - if I hadnt have found this out then I could have unwittingly been paying 5% without knowing it!
I think its very very poor form of HL not to notify when a fund has soft closed. They know which of their customers are invested in which funds, so should email a warning that the fund has soft closed and so will be costing the full fee. I've really lost confidence in HL becasue of this. Has anyone else had experience of this?
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Comments
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welcome to the world of unit trusts. it does seem pretty poor, you should vote with your wallet and consider other investments.0
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However, I found out by chance after speaking to someone at HL that the fund had 'soft closed'. This means that the fund still accepts payments, but the discount no longer applies, so Im being charged the full 5%! HL has never notified me that the fund had soft closed, and my monthly deposits have been charged 5%.
This is normal on soft closures. We had a thread the other day on this.This is obviously of great concern - if I hadnt have found this out then I could have unwittingly been paying 5% without knowing it!
This is the risk when you DIY. You need to find out for yourself.I think its very very poor form of HL not to notify when a fund has soft closed.
i agree. It is possible the FOS would as well in a complaint as you cannot lay your charges out as they do but then have a consumer buy on that basis but then suffer a extra charge on top that was not disclosed.
It is misrepresentation. However, you still need to be careful when you DIY.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
i agree. It is possible the FOS would as well in a complaint as you cannot lay your charges out as they do but then have a consumer buy on that basis but then suffer a extra charge on top that was not disclosed.
It is misrepresentation. However, you still need to be careful when you DIY.
Well it will cost the OP nothing to raise a complaint and it will cost HL £500 if the FOS take it on so they may well settle "as a gesture of goodwill".0 -
H-L would have advised you about the soft close if you were an existing investor in the fund when the soft close occurred. If you were not, then your due diligence would have found it. H-L do give you links to all the fund info from the manager.
I believe that H-L are far from perfect but you signed up to them with the full knowledge that thy do not give advice. As for the advice given by Uncertain, be careful about blackmail, it could backfire.0 -
Do HL have a list of "soft closures" on their web site?0
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As for the advice given by Uncertain, be careful about blackmail, it could backfire.
What ??
How is my advice in any way "blackmail"?
The OP has an absolute right to make a complaint if s/he feels it is justified.
If HL reject it then s/he has a right to take it to the FOS.
The fact that the system gives HL an incentive to settle the claim may work in the OP's favour but that is not in any way in his or her control.0 -
which fund are we talking about here?
If HL are still saying that they are rebating the 5% initial fee, then this is clearly their fault and they should honour their word0 -
Who do you think pays this money eventually? Possibly customers?How is my advice in any way "blackmail"?
It's like any other spurious claim which costs the claimant zero; it encourages chancers. Or perhaps you agree with our compensation culture. That's your choice, it wouldn't be mine.0
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