Foolish teenager - should bank have done more?

Parent_of_teenagers

My son is 18 and one month old - and over the past couple of weeks has tried out a stocks&shares trading app.  He seemed to be doing quite well with the fake money the app let him have as a trial - and so decided to put real money into the app.  He transferred almost all the money from his current account (HSBC) via its app.  Unsurprisingly - he isn't an expert in stocks and shares - and so has lost almost 1/2 the money in a couple of days.  He initially transferred almost £5,000.

Yes - this was his fault - and no there was no pressure - so this isn't a scam.  But should we have expected HSBC to query such a transfer?  He is still at school - so although the loss is devastating - we're still feeding him (!) - so he isn't homeless as a result, and he didn't take out a loan, and he hasn't had to sell his house or his car or ....

So all a horrible experience - and an expensive lesson to learn...

If this was my 85 year old father making stupid decisions - I might expect the bank to help?
Thanks

FIREDreamer

Assuming it was transferred to a reputable provider like Hargreaves Lansdown, AJ Bell etc then I think you are out of luck.

Banks cannot be expected to police every transfer or debit card payment unless the system flags up a dodgy recipient / crypto exchange.

No chance of compensation for rubbish investing I’m afraid. Whar did he buy / sell?

masonic

A line has to be drawn somewhere, and in the UK he has reached the age of legal majority and has the right to make his own decisions, however stupid you consider them. Hopefully a lesson has been learned. Your 85 year old father might be considered to have diminished responsibility if determined to be losing mental capacity, but likewise, if he has capacity, he is entitled to do things you consider stupid.

MattMattMattUK

I agree with Fired, if it was a scam platform then maybe, but only maybe, if it was to a legitimate trading platform then there is no reason for the bank to block the transaction, it is entirely legitimate, if ultimately an unwise choice of action. 

HillStreetBlues

Parent_of_teenagers said:

My son is 18 and one month old - and over the past couple of weeks has tried out a stocks&shares trading app.  He seemed to be doing quite well with the fake money the app let him have as a trial - and so decided to put real money into the app.  He transferred almost all the money from his current account (HSBC) via its app.  Unsurprisingly - he isn't an expert in stocks and shares - and so has lost almost 1/2 the money in a couple of days.  He initially transferred almost £5,000.

Yes - this was his fault - and no there was no pressure - so this isn't a scam.  But should we have expected HSBC to query such a transfer?  He is still at school - so although the loss is devastating - we're still feeding him (!) - so he isn't homeless as a result, and he didn't take out a loan, and he hasn't had to sell his house or his car or ....

So all a horrible experience - and an expensive lesson to learn...

If this was my 85 year old father making stupid decisions - I might expect the bank to help?
Thanks

Not a chance.
It would just encourage reckless behaviour,  as it would be don't worry if you lose, the bank will refund you.

eskbanker

Did the transfer pass the usual Confirmation of Payee check, and present all the associated warnings?

grumbler

I don't play with stocks, but I think one must try really hard to lose 50% "in a couple of days".
Can it really be some 'scam platform'?

Tony5896

Is it stocks and shares or crypto?

Rob5342

Which app was it? A trial where you do well sounds suspiciosly like a scam to convince you to pay real money.

eskbanker

Parent_of_teenagers said:

Unsurprisingly - he isn't an expert in stocks and shares - and so has lost almost 1/2 the money in a couple of days.  He initially transferred almost £5,000.

[...]

So all a horrible experience - and an expensive lesson to learn...

In terms of the cost of the lesson, has he actually succeeded in recovering the other half of the money back into his current account, or is it still invested (or 'invested')?

400ixl

grumbler said:

I don't play with stocks, but I think one must try really hard to lose 50% "in a couple of days".

Can be done easily with day trading which is likely what was being done here.