Need advice re mis-selling ISA

may2018

Hi, I would like some advice regarding a ISA I believe was mis-sold. To let you understand, my previous posts were regarding a huge amount of debt I managed to amass over a few years due to a problem with internet gambling. I was at rock bottom as I had not told anyone and along with shame and feelings of despair I contacted a debt management company for their help. I was overwhelmed by the length of time my debt would take to be repaid and the length of time it would affect my credit rating. I confided in my sister who urged me to tell my husband (who I thought was not caring or supportive). He was calm and supportive and took out a loan to cover my debts over a five year period and we're now nearly into year 3.
About 4 years ago I realised things were getting out of hand and I had a number of credit cards maxed out. I met with an advisor at my bank and explained my problems and told him I had these credit cards, some of which were at 0% interest, and I just wanted a loan to pay them off. He suggested I take a loan for more than I had planned for and not to pay off the 0% cards but to keep that money in an ISA he would set up for me then pay them off at the end of the 0% term. Needless to say I spent the money in the ISA and didn't pay off the cards.
Now, I realise it was me who got into this awful mess but since sorting myself out I feel that I was vulnerable and desperate at the time and this chap took advantage of my situation.
I do not expect any monetary gain from this as I am dealing with my debts but do you think I should complain or is it to late?
Sorry its a bit long winded but I think its important to set out my circumstances.
Thank you if anyone can help

dunstonh

He suggested I take a loan for more than I had planned for and not to pay off the 0% cards but to keep that money in an ISA he would set up for me then pay them off at the end of the 0% term.

That can sound quite reasonable. Loan interest rates tend to be lower than credit card and this site is one of many that recommend what is called stoozing. ie. using interest free credit to put in cash savings accounts to earn interest.

Needless to say I spent the money in the ISA and didn't pay off the cards.

I wouldnt say needless to say. Most people would not be as silly to do that. Although you are certainly not alone.

I do not expect any monetary gain from this as I am dealing with my debts but do you think I should complain or is it to late?

The only person that seems to have done any wrong here is you. The bank didnt spend your money. you did.

Sorry its a bit long winded but I think its important to set out my circumstances.

It is important but you need to look closer to home for any wrong doing.

magpiecottage

I think the OP has been daft but so has the adviser.

Even if some of the cards were at 0% some weren't. In any case the new loan would itself be attracting interest - almost certainly at more than the ISA would have paid.

So it sounds like there was misselling. However, the real problem is that the OP was foolish enough to spend the money rather than repaying the debt and unless she had "IDIOT" written across her forehead, I cannot see that the adviser could have realised.

So I would not be particularly sympathetic to such a complaint.

pc1271

Nothing was "sold" - an ISA is a savings account, not a loan or insurance. His advice was financially sound - earn interest while the cards are at 0% then pay them off before attracting interest - but for someone already heavily in debt with self-control issues it wasn't wise. He should probably have realised that.

The advice wasn't right for you, but nothing was mis-sold.

dunstonh

Thinking about this, the savings should have been used to go against the bit with interest (or the loan). So, yes, there is scope potentially. Although the bank didnt spend the money.

may2018

Thank you for your replies. I did not post my query to be judged on my actions; I am well aware that I have been an 'idiot' and 'daft' and I am now paying for my mistakes. I was in the grip of an addiction which was out of control and the advisor was aware of this - my point was, given my situation was this the best advice and did he have my best interests at heart?

Little_Mo_70

may2018 wrote: »

Thank you for your replies. I did not post my query to be judged on my actions; I am well aware that I have been an 'idiot' and 'daft' and I am now paying for my mistakes. I was in the grip of an addiction which was out of control and the advisor was aware of this - my point was, given my situation was this the best advice and did he have my best interests at heart?

Hello May

You had asked for advice and have had several excellent responses. Why ask for advice and then complain about the replies?

Those replies gave adequate reasons why they believed you had/had not received the best advice and explained you why they felt your complaint would/ would not stand up should you make one. Perhaps you needed to hear that you had an excellent case for complaint and to go ahead as you were bomb proof.
You've had honest opinions and, IMO no one was judging you.

I'm not judging you when I say there seems to be a bit of a pattern here. You sought advice from your bank regarding your debt, and received their response but want to complain about that too. You had the option to refuse their offer of an ISA and if you had wanted a straight cash loan then you should have stuck to your guns. In any event, the purchase of the ISA was discussed as an option to clear your debt and you agreed to purchase it on that basis therefore, personally, I don't feel you have a justified complaint unless you could prove the advisor had put undue pressure on you to purchase the ISA. That is an opinion and not a judgement!

I know, it's difficult when you have been in such a bad place, sometimes, to see things from outside the box.

Hope things go well for you for the future. Look after that wonderful man of yours and be thankful for your lovely sister who gave you excellent advice too.

Mo x

lippy1923

My question is what would you gain from a complaint? You said you are not after any monetary gain, so what do you want to achieve? The sales person being investigated and giving them a hard time?

I know you feel the advice was poor (perhaps it was) but at the end of the day it was your choice and actions that led to your unfortunate situation.

Personally I would forget it, move on and be thankful you have a great hubby who supports you