Rent2rent scam. Losing sleep

money11111

I can't sleep for worrying. I recently found out my OH has been investing money with rent2rent companies. He tried to explain how legitimate they are, and was looking for a way to make money money as he thinks ISAs are not enough. I tried to calmly explain that he may have been scammed, which he didn't accept and said I just didn't understand. I think asked him if he would feel comfortable telling his friends or parents about these investment 'opportunities' and he would not, so i think he might understand that he could have made a mistake. I don't know what to do and can't sleep. 

He has paid tens of thousands to these companies, who all claim he will be paid back monthly for the next 2 - 3 years wt interests rated of at least 30%. 

I don't think FCA can help, and he hasn't actually got anything to report yet as he said so far the companies gave paid him the money (2 months in).

We are not married. Have children. House in joint names. Feeling pretty scared as he has autistic traits and has genuinely believed these people. 

Not looking for relationship advice. I'm looking for a support service in this case where he hasn't actually been scammed yet but it's looking highly likely he has been. I'm worried ge might put more money into this - he mentioned he paid one company £7k finders fee for the property for rent2rent and now the landlord will require an extra £1k security deposit. I said don't pay any mire money, but he's been ducked in, saying they have a legitimate contract but he hasn't even seen a solicitor. 

eskbanker

money11111 said:

I'm looking for a support service in this case where he hasn't actually been scammed yet but it's looking highly likely he has been.

As you say, the FCA won't be interested, unless the companies are unregulated while carrying out activities that can only legitimately be done by regulated businesses? https://www.fca.org.uk/consumers/warning-list-unauthorised-firms shows the ones they're aware of.

Perhaps worth sharing (on here) the names of the companies in as much detail as possible (e.g. specific URLs, etc) and/or researching them online by searching for the names plus the word 'scam' or the like?

ChesterDog

Interest of at least 30% = scam.

money11111

Yes, I'm aware it's probably a scam (my OH is in denial about this though). I'm wondering who to contact for help, even if it's just emotional support as I am spending every minute worrying. He won't get legal help yet from anywhere I expect as he hasn't, as yet, been scammed as the companies are making payments. My worry is, the payments will happen for a few months and then stop. My other concern is that he might think the investments are working, and put more in. 

TheBanker

money11111 said:

Yes, I'm aware it's probably a scam (my OH is in denial about this though). I'm wondering who to contact for help, even if it's just emotional support as I am spending every minute worrying. He won't get legal help yet from anywhere I expect as he hasn't, as yet, been scammed as the companies are making payments. My worry is, the payments will happen for a few months and then stop. My other concern is that he might think the investments are working, and put more in. 

Are these monies coming from a joint bank account, or an account just in his name?

jimjames

How did he find these investment "opportunities". Was it via Facebook or Insta? I've seen many scams advertised on both that look convincing on the surface but when you dig deeper you see it's fiction. 30% is way more than most claim to pay though because it makes them less believable.

What are the names of the companies involved? It's a very common tactic to pay for a few months then target the victim for more money because it's working for them.

daveyjp

Investing in a property investment scheme you may not fully understand does not make the scheme a scam, but not understanding it fully is a valid reason not to invest.

It probably isn't a scam and 30% returns may well be possible.  Turn a monthly rental property in a HMO (£100 per room per week) into an Air bnb daily charge (£50 per night) and you may see huge returns, unfortunately the returns aren't guaranteed.

dlevene

Once again, the OP isn't asking whether or not it's a scam, they're asking where to find advice or support. 

OP, suggest you start here: 

https://www.actionfraud.police.uk/

https://www.victimsupport.org.uk/

I know you said you're not after relationship advice but I'd make it very clear you will not allow your partner to put any more money in until you've been able to get to the bottom of this.

Good luck.

tacpot12

Here's somewhere he or you could go for support: https://www.victimsupport.org.uk/

Given his traits, you need to ensure that all your money is safe. You need to move any money out of joint accounts.

At the moment, there seems little danger that you would lose your house, but if they realise he is easy to scam, there might be some risk down the line that he signs something that gives the scammers an interest in your home. You might wnat to take some professional legal advice about severing the joint tenancy. A solictor should be able to give you advice on whether this is a necessary step for  a few hundred pounds.

Ultimately, he might end up losing all his money. You could try involving his friends and family (the ones that he wouldn't tell about these investment opportunities) not to tell him that he has been stupid, but to support him to invest his money in other ways. I suspect that he doesn't want to pay tax which is why these scam investments seem attractive. Paying a little tax to have a safe investment with a reputable firm is no bad thing. 

money11111

Thank you for the links. I am considering talking to his parents as he invested some of their money, but I'm concerned about worrying them unnecessarily because, as one poster said, it might turn out fine. I just don't want him risking any more money. I'll call the numbers thank you.

Eyeful

1. How did he find out about these companies?

2. Did he contact them or did they contact him at the start?

3. Would you be willing to to tell us the names of these rent2rent companies?