LCF ISA 8% over 3 years

Jan301261
Jan301261 Posts: 1 Newbie
in ISAs & tax-free savings
Is LCF Fixed Rate ISA Account reliable 8% with 5k ? Anyone recommend

Comments

  • MallyGirl
    MallyGirl Posts: 6,617 Senior Ambassador
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    how do you feel about the statement:

    Investing means your capital is at risk and payments are not guaranteed if borrowers default.

    or this one:

    Please note that the products are not authorised by the Financial Conduct Authority and not protected by the Financial Services Compensation Scheme.
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    All views are my own and not the official line of MoneySavingExpert.
  • dunstonh
    dunstonh Posts: 116,347 Forumite
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    Is LCF Fixed Rate ISA Account reliable 8% with 5k ?

    With any investment that has 100% loss potential, unregulated and very high risk, you will only know if its reliable when your tranche matures and you get your money back.
    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.
  • vigman
    vigman Posts: 1,377 Forumite
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    I was just going to post that LCF keep appearing as a best rate fixed ISA

    Is it legal to advertise the fixed rate of 8% when this is obviously not guaranteed?

    Vigman
    Any information given in my posts or replies is intended to be of interest and/or help to members of the forum. I cannot guarantee that this is accurate or up to date.
  • jimjames
    jimjames Posts: 17,609 Forumite
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    edited 28 March 2018 at 1:05PM
    vigman wrote: »
    I was just going to post that LCF keep appearing as a best rate fixed ISA

    Is it legal to advertise the fixed rate of 8% when this is obviously not guaranteed?

    Vigman

    I'd certainly say not. However they seem to have found a loophole as Advertising Standards are not interested as it's an investment and FCA are not interested because it's an unregulated product.

    Effectively means they can say what they like - very poor situation!
    Remember the saying: if it looks too good to be true it almost certainly is.
  • Paul_DNAP
    Paul_DNAP Posts: 751 Forumite
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    vigman wrote: »
    I was just going to post that LCF keep appearing as a best rate fixed ISA

    Is it legal to advertise the fixed rate of 8% when this is obviously not guaranteed?

    Vigman


    It WILL give you a fixed return of 8% if (and it's a big IF) the investment completes successfully and your money doesn't disappear completely.


    So basically the only guarantee they are giving you is that even if the investment performs better than 8% your share of the return is capped, but if it goes wrong, your are liable for the entire loss.
    (Although I could be wrong, I often am.)
  • jimjames
    jimjames Posts: 17,609 Forumite
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    Paul_DNAP wrote: »
    It WILL give you a fixed return of 8% if (and it's a big IF) the investment completes successfully and your money doesn't disappear completely..

    That's the problem I have with it. In any other banking scenario, if you're told something is fixed then that means it will pay the amount for the agreed term.

    LCF is only fixed if the borrower pays up so is in no way guaranteed. The advertising for them makes no mention of this fact and is even cheeky enough to tick a box saying "security" whatever that means - but to the layperson I'd suggest it means the amount is secure.

    Regardless of their adverts the reality is that you could lose ALL your money and may not receive the income you're expecting either.

    Screenshot_20170326-095026.png

    https://damn-lies-and-statistics.blogspot.com/2017/09/london-capital-finance-isa-savings-bond.html
    Screenshot_20170326-095106.png
    Remember the saying: if it looks too good to be true it almost certainly is.
  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
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    bail-in wrote: »
    A Google search reveals a recent letter addressed to the CEO of London Capital and Finance outlining issues of concern to potential investors looking to perform commercial due diligence on this commercial loans financial marketing business. The link to the letter is

    "A Google search reveals??!"

    Come off it buddy, you didn't just stumble across it on Google, it is on the same single-purpose blog site which hosts your 'in depth review' of LC&F which you initially posted here and then later arranged for it to be hosted on that weebly site - while you continue to attempt to promote the review on the signature to every post you make on the MSE forums under the bail-in username.

    The idea that "a Google search reveals' it - as if we should infer that it provides new and independently-sourced research or opinion - is hokum. It's written or uploaded by you or your affiliates.

    Whatever your motivation may be to promote your work so fervently while having the letter and review signed off as 'anonymous' (whether that be a paycheque, self-promotion etc)... that technique of linking to internet sites and published materials with which you're affiliated - while intimating that you stumbled upon it through happy accident or that one might find it on a popular search engine - is a popular spamming technique and thereby undermines any altruistic purpose you might have.
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