• Welcome to DOSBODS

     

    DOSBODS is free of any advertising.

    Ads are annoying, and - increasingly - advertising companies limit free speech online. DOSBODS Forums are completely free to use. Please create a free account to be able to access all the features of the DOSBODS community. It only takes 20 seconds!

     

Sign in to follow this  
Frank Hovis

Fancy a guaranteed 8% ISA return?

Recommended Posts

Well you've just missed your opportunity.

Though you have kept your money.

 

Surely this is illegal; they even made their own faux comparison websites to bring punters in.

 

Thousands of people who invested in a high-risk bond scheme marketed as a "Fixed Rate ISA" fear they have lost everything after the company collapsed.

London Capital & Finance (LCF), now in administration, took £236m following a marketing campaign that is now under investigation for mis-selling.

LCF paid an agent, Surge PLC, 25% commission - which amounted to £60m - to run the marketing campaign.

A series of web adverts promising 8% returns from secure ISAs were released and in addition a comparison website - run by a company with links to Surge - would compare the 1% and 2% return ISAs from high street banks with the investments at LCF.

LCF was authorised by regulator the Financial Conduct Authority (FCA) - but the FCA said the authorisation was to provide consumer financial advice, not the sale of bonds or ISAs.

The FCA subsequently ordered the advertisements should stop running.

Where did the money go?

In a letter to bondholders administrator Finbarr O'Connell said once the £60m to Surge was paid, returns of up to 44% would be required in order for LCF to make good on its promises.

Investors were told the funds - and therefore risk - would be spread across hundreds of companies but, according to Companies House records, LCF loaned money to 12 - four of which have never filed accounts, nine are fewer than three-years-old and nine had loans from LCF in 2017.

Much of the cash was loaned to companies that then "sub loaned" to others. Bondholders have raised concerns about connections between the directors of companies that received money and those who ran LCF.

https://www.bbc.co.uk/news/uk-england-47454328

 

Although there are vast numbers of positive reviews on this suspicious site.

https://www.feefo.com/en-GB/reviews/london-capital-and-finance-plc?displayFeedbackType=SERVICE&timeFrame=YEAR

 

Share this post


Link to post
Share on other sites
Posted (edited)

Interestingly there is a page on Trustpilot, a proper review site, where there are reviews of Feefo.

Feefo had, and still has, loads of positive reviews about LCF including people saying they received the promised return.

They are universally bad and most have a weedy objection logged against them by Feefo.

This seems to sum up Feefo best; in case you were ever tempted to rely upon their reviews:

 

Scam reviews

Such gushing positive reviews! But try to share your experience—— you can’t. These are not objective reviews from consumers. There is no way to leave a review on this site when you visit. Are the reviewed companies paying to post reviews they control?

 

https://uk.trustpilot.com/review/feefo.com

 

Edited by Frank Hovis

Share this post


Link to post
Share on other sites
Posted (edited)

Per the Telegraph there is another company that does this false, or rather "managed", positive reviewing: Reevo. I hadn't heard of either.  Which sounds like my good fortune.

 

 

while Reevoo and Feefo collect and manage reviews on behalf of clients.

Edited by Frank Hovis

Share this post


Link to post
Share on other sites

Cunt weasels.

Peter Thornley and his wife retired to Devon after a teaching career. He now fears he may have to return to work if their money is lost.

"It put us under a lot of pressure - socially and emotionally. It makes you feel really foolish," he said. "There is a group of us bondholders; there are about 900 in ours.

"We have all got money that we have been left by parents or a lump we got on retirement, then all of a sudden 35 years of savings has gone in a couple of months."

John Wright, a retired joiner from Northampton, was recovering from heart surgery when he found out LCF was in administration.

"This was money for our grandchildren, we weren't going on fancy holidays or buying flash cars - my wife worked in BHS and saved her whole life, this is hard-earned money, we saved and saved and saved.

"I am devastated, I feel a complete fool. I was completely taken in by the marketing."

A youngish looking teacher might have to go back to work.

IM vaguely aware of this operation. Ive heard a couple of things over the last 2 years.

Stepping back and lookign at the wider picture.

I would guess these were involved in unregulated lending to all thigns property investment.

Pretty much the entire finsec/crowd funding apepars to balls deep in lendign a rew loans to a small number of developers.

Its insane.

Its also insane that old plain vanilla regional BSs are pretty much operating in the same business rea - IOBTL, LL, commercial rea lestate.

This is ver yvery risky lending, even more so assky scrapers of commercial property pile up.

 

 

 

Share this post


Link to post
Share on other sites
14 minutes ago, spygirl 🏆 said:

Cunt weasels.

Peter Thornley and his wife retired to Devon after a teaching career. He now fears he may have to return to work if their money is lost.

I honestly don't understand how someone that is reasonably intelligent can fall for a scam like this. Interest rates have been shit for the last decade. Why would a company pay 8% interest when everyone else was paying 1% interest?

 

Share this post


Link to post
Share on other sites
8 minutes ago, One percent said:

If it sounds too good to be true, it probably is. 

Youd think that but ... there's also fund thats just slightly top the returns available. Bernie Madoff was one.

Thesenever sound too good to be true, just a bit better than the average.

And they are still scams.

 

Share this post


Link to post
Share on other sites
1 minute ago, Great Guy said:

I honestly don't understand how someone that is reasonably intelligent can fall for a scam like this. Interest rates have been shit for the last decade. Why would a company pay 8% interest when everyone else was paying 1% interest?

 

Most teachers are not intelligent.

They have no critical thought or ability to grasp the most basic maths.

'I can earn much more i nthe private sector!' they cry.

I sit down. I talk them thru how muc hthey eanr, how long their day is (its not) how much holday they get - a lot.

Then I point that they are ubnlekly to earn more than 15k i nthe private, and theyll be working 8 more weeks a year. And theyll be having to fund their own pension.

In my 10 years as a governor Ive not met a single teacher I thought would be employable in the private sector.

 

 

4 minutes ago, Great Guy said:

I honestly don't understand how someone that is reasonably intelligent can fall for a scam like this. Interest rates have been shit for the last decade. Why would a company pay 8% interest when everyone else was paying 1% interest?

 

From google:

Peter Thornley is a physical education teacher at Colstons School in Bristol, BST. Review Peter Thornley's ratings by students and parents.

Maybe they ought to make him do his banking in his underpants?

 

Share this post


Link to post
Share on other sites
16 minutes ago, Great Guy said:

I honestly don't understand how someone that is reasonably intelligent can fall for a scam like this. Interest rates have been shit for the last decade. Why would a company pay 8% interest when everyone else was paying 1% interest?

Greed frequently overrides intelligence.

13 minutes ago, spygirl 🏆 said:

Peter Thornley is a physical education teacher 

Fuck him.

Made kid's lives a misery for a living most likely, and was given a state pension for doing so.

Share this post


Link to post
Share on other sites
13 minutes ago, The XYY Man said:

LCF = Let's Con Folk.

 

XYY

Pretty much; there have to be criminal proceedings for this as they weren't authorized to take money; just to offer advice.

That for their product to work required then to make a 44% return shows that it could never have possibly worked so there was ever any intention to provide the promised returns.

Money saving expert forums have been warning people off them and this was also the case for even mumsnet.

To have put your money in this company you would have to have relied entirely upon their advertising and Feefo or Reevoo.

The most basic internet search would have told you not to be so stupid.

Share this post


Link to post
Share on other sites

What are these Feefo, and Reevo? Are they wise? I suspect not, so what qualifies them to offer an opinion. There seems to be many of these scam opinion companies!

Share this post


Link to post
Share on other sites
Just now, MrPin said:

What are these Feefo, and Reevo? Are they wise? I suspect not, so what qualifies them to offer an opinion. There seems to be many of these scam opinion companies!

They were both new to me but they appear highly in certain "Best.." searches because they pay Google.

Since they are funded by the companies whose products they review to "manage" their reviews then that is just going to affect their impartiality by a smidgen.

Share this post


Link to post
Share on other sites

This also shows how ineffective the FSA are. The article says it told them to stop advertising. It should have also ordered them to return any money collected. And instituted criminal proceedings against the directors and employees of London and Capital Finance. 

Shutting the stable door after the horse has bolted comes to mind. Putting the Directors in prison after they have taken the money in and been able to spend and hide some of it despite the regulator's suspicions being aroused, well!

Share this post


Link to post
Share on other sites
17 minutes ago, JoeDavola said:

Greed frequently overrides intelligence.

Fuck him.

Made kid's lives a misery for a living most likely, and was given a state pension for doing so.

State pension + genrous (barely earned) teachers pensions.

If hes 65+ he'll be on ~30k+

 

Share this post


Link to post
Share on other sites
59 minutes ago, Frank Hovis said:

Per the Telegraph there is another company that does this false, or rather "managed", positive reviewing: Reevo. I hadn't heard of either.  Which sounds like my good fortune.

 

 

while Reevoo and Feefo collect and manage reviews on behalf of clients.

Feefo are actually trying to stop fake reviews I know from direct experience.  It's trustpilot that get away with asking people to review the process of ordering on a website with no follow-up on if the order was fulfilled etc. 

Reviews.co.uk are the best. Anyway...

Share this post


Link to post
Share on other sites
Just now, spunko said:

Feefo are actually trying to stop fake reviews I know from direct experience.  It's trustpilot that get away with asking people to review the process of ordering on a website with no follow-up on if the order was fulfilled etc. 

Reviews.co.uk are the best. Anyway...

Really? The reviews of LCF on their site suggests otherwise as does the comments on Trustpilot.

Sensibly if I am interested in getting something I either ask someone who already has it or post my question on:

dosbods.co.uk

 

 

 

Share this post


Link to post
Share on other sites
38 minutes ago, Great Guy said:

I honestly don't understand how someone that is reasonably intelligent can fall for a scam like this. Interest rates have been shit for the last decade. Why would a company pay 8% interest when everyone else was paying 1% interest?

 

I suppose the promise of being fully regulated tempted people who are averse to risk. If the FCA says it's got your back...How many people check what category a company is regulated to operate under according to the FCA register?

Share this post


Link to post
Share on other sites
2 minutes ago, Frank Hovis said:

Really? The reviews of LCF on their site suggests otherwise as does the comments on Trustpilot.

Sensibly if I am interested in getting something I either ask someone who already has it or post my question on:

dosbods.co.uk

 

 

 

It is only possible to leave a review after x amount of time has passed and you need to have actually placed an order. It's not foolproof but That's more than a lot of them do ie that just let anyone leave a review.

Share this post


Link to post
Share on other sites
Posted (edited)
10 minutes ago, spygirl 🏆 said:

State pension + genrous (barely earned) teachers pensions.

If hes 65+ he'll be on ~30k+

Like I said, fuck him. Useless entitled parasite.

Edited by JoeDavola

Share this post


Link to post
Share on other sites
1 minute ago, spunko said:

I suppose the promise of being fully regulated tempted people who are averse to risk. If the FCA says it's got your back...How many people check what category a company is regulated to operate under according to the FCA register?

Well IFAs probably would and then advise accordingly.

I nearly lost money with the Icelandic Banks that @MrPin voted above despite thinking of myself as a knowledgeable investor.

All the main advice and professional websites recommended them, their returns were better but not silly, and they were in the FSCS which, again, professional websites reported as being equivalent to the FCA regulation so deposits were protected to ?£30k which was my holding.

When it all went wrong it turned out that the FSCS wasn't quite equivalent.

I did get the money back after a few nervous months.

4 minutes ago, spunko said:

It is only possible to leave a review after x amount of time has passed and you need to have actually placed an order. It's not foolproof but That's more than a lot of them do ie that just let anyone leave a review.

Ah ok.

That isn't however inconsistent with the statements on Trustpilot saying that negative reviews were suppressed.

Share this post


Link to post
Share on other sites

I have a feeling that there are a few companies like this -- in this case we're only hearing about it because they were rumbled.  For the others?  We'll have to wait a few years yet.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.