Halifax Scottish Widows investment

rugbyant

Hi all,

Halifax contacted me to explain I may have been misold the investment we took out 5 years ago.

After 2 hours on the phone with an advisor and 3 months of quiet. I received a large letter pack today advising that the advise given was not appropriate for my circumstances - little risk and have other loans I could have paid off.

The investment lost money 2 years in a row, but did recoup that loss in the following 3 years and is actually £1.2k higher than when we took it out.

Halifax have said I now have 3 options:
1)Take £8.91 - the difference betweening paying the loan and the investment value
2)Transfer investment to another Halifax one
3)Take out the investment as cash and invest elsewhere

I understand all of the above.

My question - the letter repeatedly states which ever one I do "it is in full and final settlement of the claim." Are the Halifax also supposed to pay compensation based on the fact I was misold to - like the PPi claims?

Thanks

Nasqueron

In order to get compensation you would need to have had a demonstrable loss. You said the investment is worth considerably more than when it was taken out so you have not made a loss

rugbyant

I understand that the investment grew, but not inline with the discussion the 'advisor' discussed with us.

Despite the growth I wanted to understand if you receive compensation for the 'misselling' by the Halifax?

Nasqueron

I don't think you really know what you want!

Nobody got compensation for PPI miss-selling, they received their money back and interest on the money that they would have been able to use (albeit a very generous 8%)

You will not get compensation for not making as much money as an estimate as markets go up and down and no investments like this would guarantee any gains. If you could show that if the funds were in a less risky investment they would have made more money they you could claim a loss but the nature of investment is less risky funds make less money. You need to speak to a financial expert to establish whether you could prove a loss

dunstonh

Are the Halifax also supposed to pay compensation based on the fact I was misold to - like the PPi claims?

There is no compensation and PPI claims do not pay compensation either. They pay financial redress to put you in the position you would have been had you not taken out the product. In the case of PPI, they get a refund of premiums plus interest.

In this case, the difference between doing it and not doing it is just £8.91.

To be honest, one has to wonder why you complained when you are clearly not financially worse off to any degree. What was your motive for complaining?
The small amount involved is probably why they upheld the complaint as its cheaper for them to do that than reject the complaint and spend ages arguing over £8.91.

Despite the growth I wanted to understand if you receive compensation for the 'misselling' by the Halifax?

No.

Alice_Walker

It sounds like the bank prompted the complaint, they contacted the OP to investigate the advice given five years ago and logged a complaint as a result of the information gathered on the phone call. They are not the only bank doing this, we had similar with Barclays.

Whilst I agree that the OP is not entitled to more than has been offered, Barclays proactively offered us several hundred pounds as an apology for poor customer service - it was in the account before we received the letter. There would be no harm in the OP asking for a goodwill gesture to reflect the poor service received.

dunstonh

There would be no harm in the OP asking for a goodwill gesture to reflect the poor service received.

What poor service?

rugbyant

To confirm, as per my first sentence in first post, the Halifax contacted me to tell me I had potentially been missold and based on the Halifax letter received they too acknowledge the advise was incorrect and not appropriate for what I had asked or discussed.

I fully understand, through luck, I am no worse off than before - and appreciate the comments re goodwill etc.

The poor service - the 'advisor' promising several things despite the risk profile and achievements for the investment would be a good start.

dunstonh

To confirm, as per my first sentence in first post, the Halifax contacted me to tell me I had potentially been missold and based on the Halifax letter received they too acknowledge the advise was incorrect and not appropriate for what I had asked or discussed.

I have seen a number of these. The template letter says you may have been. Not that you have been.

When they get the responses back from the investors confirming they want a review, the look at the situation and then decide a response. The amount of potential redress is a driver on whether they will decide to uphold it is a mis-sale or not.

For example, if they say it was not mis-sold, you can refer it to the FOS who will charge them £500. However, by saying it was mis-sold, there is no need to go to to the FOS was £8.91 is a lot cheaper than £500.

The poor service - the 'advisor' promising several things despite the risk profile and achievements for the investment would be a good start.

And you are being compensated for that by being put back in the position you would have been had you not done it. £8.91

[Deleted User]

rugbyant wrote: »

the Halifax contacted me to tell me I had potentially been missold and based on the Halifax letter received they too acknowledge the advise was incorrect and not appropriate for what I had asked or discussed.

They wrote to you so that you could complain if you wish. They weren't actually accepting any liability when they said you MAY have been mis-sold. However, it's a foregone conclusion that they would uphold your complaint when the amount in question was less than a tenner.

rugbyant wrote: »

I fully understand, through luck, I am no worse off than before - and appreciate the comments re goodwill etc.

You don't think the value of any investment has an element of luck attached to it?

rugbyant wrote: »

The poor service - the 'advisor' promising several things despite the risk profile and achievements for the investment would be a good start.

I don't see that as in any way "poor service", such advice can have taken no account of the subsequent worldwide recession and an investment is ALWAYS a risk (although some are more risky than others) .

Are you really pursuing this over £8.91??

rugbyant

They actually telephoned me, not wrote, and wanted to arrange a time and date.

I haven't instigated this. And no I won't be doing anything, other than move my money to another investment - with better advise than the Halifax can offer.