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  • FIRST POST
    • carlnicholls
    • By carlnicholls 10th Jan 18, 2:51 PM
    • 5Posts
    • 0Thanks
    carlnicholls
    I can find 8% investments - Am I missing something??
    • #1
    • 10th Jan 18, 2:51 PM
    I can find 8% investments - Am I missing something?? 10th Jan 18 at 2:51 PM
    Hi Guys.
    Perhaps being thick, naive or both. Was looking for the best paying fixed ISA was seeing figures of 1.85% but then found a couple of companies offering 8% for the same period.
    Are these companies such as London Capital Investment rouges or are they not listed for another reason??

    Thanks in anticipation

    Carl
Page 1
    • Lincoln Imp
    • By Lincoln Imp 10th Jan 18, 2:59 PM
    • 2,387 Posts
    • 4,146 Thanks
    Lincoln Imp
    • #2
    • 10th Jan 18, 2:59 PM
    • #2
    • 10th Jan 18, 2:59 PM
    http://forums.moneysavingexpert.com/showthread.php?t=5715951

    http://forums.moneysavingexpert.com/showthread.php?t=5614486

    http://forums.moneysavingexpert.com/showthread.php?t=5582847
    Have a nice day
    • carlnicholls
    • By carlnicholls 10th Jan 18, 3:15 PM
    • 5 Posts
    • 0 Thanks
    carlnicholls
    • #3
    • 10th Jan 18, 3:15 PM
    • #3
    • 10th Jan 18, 3:15 PM
    Oh dear!

    I invested 5k with them last year for 3 years. Any suggestions what I can do or do I "just hope for the best"??
    • dunstonh
    • By dunstonh 10th Jan 18, 3:22 PM
    • 93,064 Posts
    • 60,453 Thanks
    dunstonh
    • #4
    • 10th Jan 18, 3:22 PM
    • #4
    • 10th Jan 18, 3:22 PM
    Hope they don't fail and lose the lot. And in future stick to mainstream and go by the adage that if something is too good to be true....

    There is a world of difference between a fixed term deposit getting FSCS protection and an unregulated loan note/bond that is not even a retail product and doesn't get any FSCS protection.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • carlnicholls
    • By carlnicholls 10th Jan 18, 3:28 PM
    • 5 Posts
    • 0 Thanks
    carlnicholls
    • #5
    • 10th Jan 18, 3:28 PM
    • #5
    • 10th Jan 18, 3:28 PM
    Indeed!!
    Its not an excuse but saw and FCA number and "thought" that meant they were legit!!
    Everything crossed now for 3 years!!!!!
    • chockydavid1983
    • By chockydavid1983 10th Jan 18, 3:46 PM
    • 586 Posts
    • 355 Thanks
    chockydavid1983
    • #6
    • 10th Jan 18, 3:46 PM
    • #6
    • 10th Jan 18, 3:46 PM
    How do people come across such companies when looking for savings products? Is it something that should and could be clamped down on somehow?
    • Eco Miser
    • By Eco Miser 10th Jan 18, 4:01 PM
    • 3,444 Posts
    • 3,234 Thanks
    Eco Miser
    • #7
    • 10th Jan 18, 4:01 PM
    • #7
    • 10th Jan 18, 4:01 PM
    Paid ads on search engines and 'financial sites' that are just lists of links.
    It could and should be clamped down on, but currently falls between regulators. See various comments in the threads linked in post#2.
    Eco Miser
    Saving money for well over half a century
    • ivormonee
    • By ivormonee 10th Jan 18, 4:13 PM
    • 165 Posts
    • 102 Thanks
    ivormonee
    • #8
    • 10th Jan 18, 4:13 PM
    • #8
    • 10th Jan 18, 4:13 PM
    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.
    • OldMusicGuy
    • By OldMusicGuy 10th Jan 18, 7:03 PM
    • 407 Posts
    • 802 Thanks
    OldMusicGuy
    • #9
    • 10th Jan 18, 7:03 PM
    • #9
    • 10th Jan 18, 7:03 PM
    How do people come across such companies when looking for savings products? Is it something that should and could be clamped down on somehow?
    Originally posted by chockydavid1983
    It's because they pop up on a search engine with the word "ad" against them. Instead of scrolling down a few lines below the ads to find the real search results for places like Money Supermarket, they somehow seem to think it must be "guaranteed" because it is on the internet . Even though the "ad" stands for advertisement and the small print makes it clear they are unregulated.......
    • jimjames
    • By jimjames 10th Jan 18, 7:23 PM
    • 12,655 Posts
    • 11,322 Thanks
    jimjames
    How do people come across such companies when looking for savings products? Is it something that should and could be clamped down on somehow?
    Originally posted by chockydavid1983
    These companies advertise on sites called "best savings rates" or similar. They can do so and Advertising Standards aren't interested saying it's regulated by FCA. FCA aren't interested because it's not regulated.

    End result is that unwary investors are buying things that are not what they seem.

    It's because they pop up on a search engine with the word "ad" against them. Instead of scrolling down a few lines below the ads to find the real search results for places like Money Supermarket, they somehow seem to think it must be "guaranteed" because it is on the internet . Even though the "ad" stands for advertisement and the small print makes it clear they are unregulated.......
    Originally posted by OldMusicGuy
    That's not always the case. Many are appearing on sites about savings

    I invested 5k with them last year for 3 years. Any suggestions what I can do or do I "just hope for the best"??
    Originally posted by carlnicholls
    Next time I'd suggest posting the question before you send your money off so you might avoid a costly mistake
    Last edited by jimjames; 10-01-2018 at 7:27 PM.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • mat6413
    • By mat6413 10th Jan 18, 7:33 PM
    • 1 Posts
    • 0 Thanks
    mat6413
    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.
    • firestone
    • By firestone 10th Jan 18, 7:47 PM
    • 246 Posts
    • 106 Thanks
    firestone
    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.
    Originally posted by ivormonee
    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
    • By JohnRo 10th Jan 18, 8:03 PM
    • 2,608 Posts
    • 2,421 Thanks
    JohnRo
    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.
    Originally posted by mat6413
    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.
    'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB
    • Fatbritabroad
    • By Fatbritabroad 10th Jan 18, 8:22 PM
    • 401 Posts
    • 203 Thanks
    Fatbritabroad
    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.
    Originally posted by ivormonee
    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
    • By ValiantSon 10th Jan 18, 9:14 PM
    • 2,049 Posts
    • 1,899 Thanks
    ValiantSon
    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.
    Originally posted by JohnRo
    He should also report them to the police for harrassment.
    • Malthusian
    • By Malthusian 10th Jan 18, 9:43 PM
    • 4,258 Posts
    • 6,704 Thanks
    Malthusian
    Indeed!!
    Its not an excuse but saw and FCA number and "thought" that meant they were legit!!
    Everything crossed now for 3 years!!!!!
    Originally posted by carlnicholls
    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
    • By firestone 10th Jan 18, 10:04 PM
    • 246 Posts
    • 106 Thanks
    firestone
    He should also report them to the police for harrassment.
    Originally posted by ValiantSon
    some dodgy companies will claim a verbal agreement usually done over the phone is binding and try to pressure people that way
    • Reaper
    • By Reaper 11th Jan 18, 9:49 AM
    • 6,268 Posts
    • 4,516 Thanks
    Reaper
    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.
    Originally posted by mat6413
    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
    • By badger09 11th Jan 18, 12:43 PM
    • 6,005 Posts
    • 5,363 Thanks
    badger09
    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.
    Originally posted by Reaper
    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
    • By jimjames 11th Jan 18, 8:28 PM
    • 12,655 Posts
    • 11,322 Thanks
    jimjames
    How do people come across such companies when looking for savings products? Is it something that should and could be clamped down on somehow?
    Originally posted by chockydavid1983
    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

    Remember the saying: if it looks too good to be true it almost certainly is.
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