Post by scepticalinvestor on Sept 15, 2019 14:48:57 GMT
No compensation offered and I am now considering to take the complaint to the financial ombudsman service
Does anyone have experience of them? I understand they may take years to decide on a case?
Clearly PP will put forward arguments that the fees were justified.
Would anyone be willing to share the list of arguments they will put forward to the ombudsman to counter the PP view?
One thing I am concerned about is however if PP loose..then maybe they do Indeed go bankrupt and the properties I'm still invested in will be sold off in a fire sale
You should definitely take your complaint to the FOS. It's very simple and straightforward to do so. I just escalated my complaint to the FOS a few minutes ago, it took me about 10-15 minutes at most.
Just to be clear, past FOS cases establish that financial service providers have a right to make commercial decision like changing fee structures so imho a customer is unlikely to get a positive outcome going purely down that route. However, the caveat is that FOS will expect that providers give existing customers who don't wish to continue under the new fee regime an opportunity to say goodbye without incurring any penalties. This is the route I've taken, arguing that PP is not giving me any route to exit without incurring a significant % loss and also forcing me to pay the non-refundable monthly account fee (albeit only £1.20) from day one. I argued that the significant price drop since the new T&Cs were announced was quite predictable and attributable almost wholly to the announcement.
PP undoubtedly considers that the January deadline for AUM refunds is a reasonable exit route for unhappy existing investors and I guess that is what the FOS needs to adjudicate on.
In any case, I want to ensure (at least on my behalf), that this move is not cost-free for PP. They will need to spend time, effort and money (£550/case after the first 25) on this until there is a ruling from the FOS.
To be absolutely honest, after reading the article about PP shrinking to 7 employees by next year, they have far bigger problems to tackle and this action at the FOS is hardly going to make it any more/less likely that they will go under.
So please do escalate your complaint to the Ombudsman!