Misselling of bonds

Clint163

Malthusian wrote: »

DunstonH did not say half of what you attributed to him in quote brackets.

I was tempted to offer some pointers, but I'm not going to bother if you're going to misrepresent what other people say.

You are still going out of your way to demonstrate your ignorance. Commission has not been allowed on most products used by IFAs since 2012, including investment bonds. When you're putting in a claim for PPI misselling it doesn't really matter how ignorant you are, everyone gets a payout anyway as long as they remember to spell the name of their bank correctly. If you're putting in a claim for misselling of an investment product you have to actually show you were recommended an investment that was not suitable for you.

is this not what I am trying to say, he was sold a bond. Maybe I am infnorant but the bond to me was more for a older person. Still yet to hear of someone who had one at such a young age. He never had plans for keeping this bond for the required duration and this was explained to the bank at the sale. He planned on buying property. This is the information I gave maybe cause I highlighted that he lost money therefor everyone had jumped on and picked parts of my conversation and tore it to shreds. This is why people use claim companies because we are not all very good at writing the way it was sold. If it was in person and we were discussing it then I think it would be clearer than typing it out

Clint163

dunstonh wrote: »

Please provide your evidence. Product providers would be fined tens or even hundreds of millions and the IFAs could be shut down. Being paid commission after it was outlawed in 2012 would make headlines in the national press.

It doesnt say a lot for your sister if she knows about it. Indeed, knowledge of it and failure to report means your sister is in breach of FCA guidelines and could suffer enforcement action from the FCA.

Or perhaps you should retract what you said as I suspect that it was made up.

So no product has any commission attached to them? Or are you saying they cannot sell them based on the comission?

Clint163

Malthusian wrote: »

DunstonH did not say half of what you attributed to him in quote brackets.

I was tempted to offer some pointers, but I'm not going to bother if you're going to misrepresent what other people say.

You are still going out of your way to demonstrate your ignorance. Commission has not been allowed on most products used by IFAs since 2012, including investment bonds. When you're putting in a claim for PPI misselling it doesn't really matter how ignorant you are, everyone gets a payout anyway as long as they remember to spell the name of their bank correctly. If you're putting in a claim for misselling of an investment product you have to actually show you were recommended an investment that was not suitable for you.

How would I know what is sold with comission these days? I don't work for the finance industry. Not everyone gets a pay out by Ppi. I have read many stories on the fos website and on this forum that this is not the case.

Clint163

I would like to mention for all the negativity on this post. I am not slating any IFA. When making any financial plans we go to see a IFA. we pay a fee for the advice given and we ask more question these days than what we did many years ago however that does not say we will totally understand the technical side of products. Since using them I have no complaints. Regarding Ppi and missselling of products by the bank there was targets they had to reach and as ignorant as I am I think this is probably where most of the misselling took place. I can only base my knowledge on what I have read. This is not a made up story. It's regarding a misselling of a bond. If my comments are all confusing then that is very easy done. I am not that great at responding to individual sentences as not quite grasped how to use the forum. My grammar it terrible and maybe I am not that great at getting things across due to this. If you were to ignore all that and just help me out and make it clearer to me rather than pull parts of my comments and rip them apart.

I will ask this question different and hope for a better response and to those who have a financial background.

If my husband who was 29yr old no kids who sold a house made a small profit of that house. His plans were to buy another property in the next few years. Would you recommend a with profit bond? Was the product a suitable one for his plans? This was the scenario and this is the part where we feel it was missold.

adindas

Clint163 wrote: »

IT was a flexible investment bond. The reason of the misselling is from the fact that firstly, he came into money so practically pestered us until he went in to see him.

Clint163 wrote: »

The money would have made more in his savings account.

I was the same boat with your husband, see below. But to be fair if the money make say 7-10% return which is very possible to some investement product. Are people going to complain as miselling case ??

Clint163 wrote: »

Plus my husband explained that he could leave the money for a few years but planned on buying a house. itself is misselling.
For over 4yrs he had this money in a bond but received less than what he put into bond.

I was in similar situation with your husband when I bought my first house. I needed to sell my investment product which was about £4,000 down from original acquaring price purchased about 5 years ago. I needed a lot of cash to bring down the LTV lower than 60%, to get the best deal for Mortgage in the market. Not to mention the los include the missing opportunity of getting interest when the money sat in the saving and/or high interest current account.

When I sat with advisor on the bank, I also explained I wanted to use the money as a deposit to buy a house.

When I sold it was about £4,000 down as original purchase price, but I did not claimed as a mis selling as I understand it is just wasting my time.

My assessmnent: Any times you sit with the investor, you must have been told that the value of your investment could go up or down. Some even with a blatant wording "your money is at risk"... So very little chance ...

Of course I will also like to learn if I could at least get back £4,000.
So keep fighting, want to hear more form you and let me know your method how to win this case.

HappyHarry

If my husband who was 29yr old no kids who sold a house made a small profit of that house. His plans were to buy another property in the next few years. Would you recommend a with profit bond? Was the product a suitable one for his plans?

It's unlikely that a with profits bond would be the first product that would spring to mind as appropriate.

As dunstonh said, many posts ago, an ISA would have been more tax efficient.

However, if an ISA was already in place, or there were significantly more funds available than could be readily put into an ISA over a few years, then an investment bond may have been an appropriate option, possibly in addition to an ISA. The With Profits fund in the investment bond may have been an appropriate investment, depending on the clients risk profile.

29 year old - irrelevant

No kids - irrelevant

Profit from house sale - irrelevant

Plans to buy a property in the next few years - could be relevant - IF "next few years" was clearly shorter than the pre-defined penalty period on surrender of the investment bond.

Clint163

adindas wrote: »

I was the same boat with your husband, see below. But to be fair if the money make say 7-10% return which is very possible to some investement product. Are people going to complain as miselling case ??



I was in similar situation with your husband when I bought my first house. I needed to sell my investment product which was about £4,000 down from original acquaring price purchased about 5 years ago. I needed a lot of cash to bring down the LTV lower than 60%, to get the best deal for Mortgage in the market. Not to mention the los include the missing opportunity of getting interest when the money sat in the saving and/or high interest current account.

When I sat with advisor on the bank, I also explained I wanted to use the money as a deposit to buy a house.

When I sold it was about £4,000 down as original purchase price, but I did not claimed as a mis selling as I understand it is just wasting my time.

My assessmnent: Any times you sit with the investor, you must have been told that the value of your investment could go up or down. Some even with a blatant wording "your money is at risk"... So very little chance ...

Of course I will also like to learn if I could at least get back £4,000.
So keep fighting, want to hear more form you and let me know your method how to win this case.

Thank you. This bond was from 2002 and was surrendered in 2006 when we bought property. We could be outwith the time barred limit. However, through searching and reading other stories not all cases. I just hope that this is the case for us. I will keep you posted. I hope someone on this forum can give you some decent advice unfortunately I am unable and rely on others myself.

Clint163

HappyHarry wrote: »

It's unlikely that a with profits bond would be the first product that would spring to mind as appropriate.

As dunstonh said, many posts ago, an ISA would have been more tax efficient.

However, if an ISA was already in place, or there were significantly more funds available than could be readily put into an ISA over a few years, then an investment bond may have been an appropriate option, possibly in addition to an ISA. The With Profits fund in the investment bond may have been an appropriate investment, depending on the clients risk profile.

29 year old - irrelevant

No kids - irrelevant

Profit from house sale - irrelevant

Plans to buy a property in the next few years - could be relevant - IF "next few years" was clearly shorter than the pre-defined penalty period on surrender of the investment bond.

an isa was put in place the same day and he had paid into monthly tooHis plans were to buy a property but I had to sell mine first? So the planes were to do this he did explain that the bank. So just as he said we bought a house 4yrs later. Regarding risk, he had no other investments prior to that day. He had a savings account and that was it. They did not ask him whether he would take risks. He just took what the advisor suggested as his words were' you don't want it to sit in your savings account when it could be making more". That was part of the advice given and that the money was better in the bond. He stopped paying into his isa years ago. And continued to just use his savings account. for years he had the bank contacting him regarding the amount in a savings account. Once we phoned and arranged for our accounts to put into a joint account. We had to go into the local branch to do this which was in the evening. When we arrived there was the person from the bank and another person. When we explained what we were there for we could tell there was something up. We were politely told that this did t need our presence in the bank as they had both our details. I received a call a few days later requesting if I would like to complain about my visit to the bank. I told them that it was ok but I just wished we were told over the phone rather than pop into bank. Anyway we got a big apology which was fine. After thinking about this more I think we were being pulled into bank out of pretence to discuss our savings. This is the part I don't like banks. This did happen about 7 yrs ago though. Must admit they don't bother us as much these days.

HappyHarry

Clint163 wrote: »

an isa he had and paid into monthly. His plans were to buy a property but I had to sell mine first? So the planes were to do this he did explain that the bank. So just as he said we bought a house 4yrs later.

I'm not an expert in complaints, but it does sound like the only reason he may have to make a complaint is that he wanted to buy a house in 4 years time, but was sold a product that had a 5 year surrender penalty.

If he can show this was the case at the time of sale, I suspect that the complaint may succeed.

le_loup

Whoosh! Off she goes again.
Will this never end?
Will I live long enough?
Unfortunately, I don't like popcorn and that's all they seem to sell except coke (by the gallon).