Which? has echoed concerns recently voiced by the Financial Ombudsman Service (FOS) about elderly people being mis-sold long-term investment products by their bank or building society.
Teresa Fritz, principal researcher at Which?, confirmed that many elderly callers to the Which? Money Help-line have reported being mis-sold risky investment bonds instead of the safer savings products they thought they were buying. She explained: ‘These people thought that they had a savings bond where only their income could fluctuate, they had no idea that their capital was at risk.’
Earlier this month, FOS released figures highlighting the scale of the problem. The Ombudsman has received 1,809 investment complaints from consumers aged 65 or older since April 2009. This age group accounts for 22% of all investment complaints received by FOS. ‘Increasingly, the complaints are about bank or building society branch staff.’ said FOS spokesperson, Emma Parker. Read Which?’s report on how to make a financial complaint on our website.
Advice on the FOS website tells consumers who think they may have been mis-sold how to go about making a complaint and who to contact for further advice. If consumers are uncertain how to proceed, they can call the FOS consumer helpline on 0845 080 1800 or 0300 123 9 123.
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