London Capital & Finance Plc

in Savings & Investments
14 replies 7.8K views
hello

I was looking for high interest accounts and came across London Capital & Finance Plc. They are offering very good returns on income bonds
1 year 3.9%
2 year 6.5%
3 year 8%
My dad always said "if it looks too good to be true it probably is"
Has anyone used or hear of this outfit?

Ian
«1

Replies

  • ratechaserratechaser Forumite
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    Have you looked at the questions that the website asks you before you even get to look at the bond documentation?

    That's more than enough to tell you that this is not one for the faint hearted!

    And I'm continually astounded that the FCA/PRA (whichever one is the more responsible here) lets this sort of retail marketing go on for products that are clearly only suitable for HNW/sophisticated investors.
  • bigadajbigadaj Forumite
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    Read the small print.

    Your capital is at risk and payments are at risk if the borrower defaults.
  • eskbankereskbanker Forumite
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    Listen to your dad and/or search the forum for various threads such as http://forums.moneysavingexpert.com/showthread.php?t=5346049 which should help you make your mind up!
  • dunstonhdunstonh Forumite
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    I was looking for high interest accounts and came across London Capital & Finance Plc. They are offering very good returns on income bonds

    As you were looking at high interest accounts, how did you manage to come across London Capital & Finance as those are not deposit based accounts. They are non-mainstream 100% capital at risk investments.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • ratechaserratechaser Forumite
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    dunstonh wrote: »
    As you were looking at high interest accounts, how did you manage to come across London Capital & Finance as those are not deposit based accounts. They are non-mainstream 100% capital at risk investments.

    Erm, it's not hard to see how this happens... e.g. try a Google search on 'top savings account' - first hit I got was a sponsored ad for https://www.best-savings-rate.co.uk - which then has LCF featured on its home page.

    All too easy to see how the financially naive could be snared...
  • ian666ian666 Forumite
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    This is an extract from LCF web page. Very cleaver wording.

    London Capital & Finance Plc.
    Authorised and regulated by the Financial Conduct Authority
    100% track record
    Full asset backed security
    Manage and view your investment online
    No set up costs, no management fees, and no charges
  • I too have found this site advertising really good interest rates, but approaching cautiously searched for company information. It seems that 5 directors have resigned recently but I do not know the reasons why. I have joined this forum to try to get extra info.
  • dunstonhdunstonh Forumite
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    71jagman wrote: »
    I too have found this site advertising really good interest rates, but approaching cautiously searched for company information. It seems that 5 directors have resigned recently but I do not know the reasons why. I have joined this forum to try to get extra info.

    It is not a deposit based product. So, it is not offering really good interest rates. It is offering a yield on 100% loss potential investment with no FSCS protection.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • If there is a plc in the name does it mean that his is a public limited company or is it just for creating an "impression" ?
    Financial Information available online for last year:
    London Capital & Finance Plc
    The Old Coach House Eridge Park, Eridge Green, Tunbridge Wells, Kent TN3 9JS,
    Status ACTIVE
    Type Other
    Cash £8
    Total Assets £1,252,404
    Liabilities £-695,006
    Net Worth £40,944
  • bowlhead99bowlhead99 Forumite
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    Yes, if there is a plc in the name it is a public limited company. That is what those specific initials stand for in an entity name, and you can't use that term in your name if you are a private limited company, even though both words begin with 'p'. A private limited company is just generically known as a limited company (e.g., abbreviation Ltd).

    However, a 'public limited company' status does not really give your customers any extra rights or protections, it is just an entity type, and has certain rules set out in the Companies Act to which it must adhere.

    There are various corporate secretarial rules which a plc has to follow, e.g. the timescale for filing accounts, certain limitations on the minimum level of nominal share capital and the extent to which it is paid up, a minimum of two directors and so on.

    If you wanted to list on a UK stock market, you would have to be a plc rather than private, and listing on a stock exchange would give you yet more rules to follow. However, the fact you are a plc does not mean you are listed on a stock exchange, it just means that you are a type of entity that could be, if you were going to satisfy all the relevant listing rules and pay all the associated costs of doing that.

    The majority of companies in the UK are private. If a company is formed with public status, this may imply that it will one day choose to offer shares or debt instruments to the public which are listed on a stock exchange. Or it may not. Companies of either status can be dodgy as hell or upstanding and legitimate.
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