I can find 8% investments - Am I missing something??

firestone

ivormonee wrote: »

There are P2P type loan notes/ mini bonds etc that offer these kinds of rates. There are more risks involved than sticking your savings in a building society cash ISA. It's a risk/ reward scenario. The more risk, the greater the potential reward/ loss. Safety doesn't pay and risk has to be calculated and encapsulated within a wider portfolio.

they may appear P2P type loans but true P2P companies are more of an open book and trying to become mainstream (but with the risk/reward scenario mentioned)

JohnRo

mat6413 wrote: »

my step father, has just agreed to invest £7000 with bankway ( London based property bond ), they are offering 8% for 1 year. I have managed to talk him out of it, they are now trying the hard sell. He is very worried as the are threatening debt collection agency, even though he did not signed anything.

If he hasn't signed anything then there is no contract to honour and no 'debt' to collect. Making enquiries or stating an intent is not a binding agreement to proceed.

He ought to tell them to shove it where the sun doesn't shine, sideways.

Fatbritabroad

ivormonee wrote: »

There are P2P type loan notes/ mini bonds etc that offer these kinds of rates. There are more risks involved than sticking your savings in a building society cash ISA. It's a risk/ reward scenario. The more risk, the greater the potential reward/ loss. Safety doesn't pay and risk has to be calculated and encapsulated within a wider portfolio.

Yep I use p2p for this kind of risky investment. 12% returns but have 5k in it spread across two sites and about 20 loans. Compared to 25k in my s aNd s isa in a simple tracker. 16k in cash and 140k in company pension (also in a simple tracker). I've assumed worst case the whole 5k will go down the pan. Will I be annoyed if it happens. Yes. Will I lose my house.no

ValiantSon

JohnRo wrote: »

If he hasn't signed anything then there is no contract to honour and no 'debt' to collect. Making enquiries or stating an intent is not a binding agreement to proceed.

He ought to tell them to shove it where the sun doesn't shine, sideways.

He should also report them to the police for harrassment.

Malthusian

carlnicholls wrote: »

Indeed!!
Its not an excuse but saw and FCA number and "thought" that meant they were legit!!
Everything crossed now for 3 years!!!!!

Ask for your money back minus any yield payments they have already made to you.

If they're in the good financial position they claim they are, they'll have no problem returning your remaining initial capital.

I'm deadly serious.

firestone

ValiantSon wrote: »

He should also report them to the police for harrassment.

some dodgy companies will claim a verbal agreement usually done over the phone is binding and try to pressure people that way

Reaper

mat6413 wrote: »

my step father, has just agreed to invest £7000 with bankway ( London based property bond ), they are offering 8% for 1 year. I have managed to talk him out of it, they are now trying the hard sell. He is very worried as the are threatening debt collection agency, even though he did not signed anything.

Every time I have heard of companies doing this it has turned out to be an outright scam. Legitimate outfits care about reputation, scammers do not.

He should take it as a good sign he has done the right thing.

badger09

Reaper wrote: »

Every time I have heard of companies doing this it has turned out to be an outright scam. Legitimate outfits care about reputation, scammers do not.

He should take it as a good sign he has done the right thing.

And tell him that he may be subjected to calls, emails, letters etc from similar companies offering unregulated 'investments' in future.

All of which he should ignore.

jimjames

chockydavid1983 wrote: »

How do people come across such companies when looking for savings products? Is it something that should and could be clamped down on somehow?

To follow up, I saw an ad for another company on Facebook earlier. Every word mentioned savings, nothing about risk so it's hardly surprising that the unwary get trapped.

http://damn-lies-and-statistics.blogspot.co.uk/2018/01/blackmore-bonds-genuine-investment.html

It should definitely be clamped down on so that consumers are not being duped into risky investments without realising it

dunstonh

James, have you thought about sending that to the FCA. They are looking at unregulated investments and how they are marketed at the moment. You may find someone willing to take an interest.