TSB woes

[najaB]

If he's bought actual shares (rather than options) they will be worth 0 if the company folds.

You would hope that he'd see the writing on the wall and sell, even at a loss.

And in the worst case they wouldn't necessarily be worthless, but he'll be at the back of the creditors queue. So unless the company is strangely asset rich, the likelihood of getting anything back is very low.

 

[Typhoon]

As TSB had neither formally responded to his case, nor submitted their final letter, he could not elevate his complaint to the Financial Services Authority and so was left in a state of limbo.

...

Eventually he took time off from a family visit at Christmas 2018 to once again seek to have the matter resolved in-branch. Branch staff refused to accept his complaint despite being shown copies of his statements. TSB appeared to be very selective in its ‘Plusness’ and was clearly taking him for granted.

I don't think that is correct. According to the FCA website (https://www.financial-ombudsman.org.uk/consumer/complaints.htm)

they have to give their “final response” within eight weeks at the most,

If you’re unhappy with the business’ response, get in touch with us.

Well, you are unhappy with their response - they haven't bothered.

When I had problems with an energy company who wouldn't consider my complaint (send by e-mail - evidence of receipt), just offered a token payment, I gave them a stated time to reply, which they didn't. Off to the regulator, sent all the evidence - again, e-mail. Compensation four times the original offer. Different regulator, I know but I have got dosh from the FCA (when I didn't ask for any, I just wanted a written answer to a technical question when the bank insisted on a phone answer as they hadn't got time to answer written questions; I also got a written answer).

Maybe too late in this case, but I would encourage you to push it, if you feel aggrieved. In my opinion the vast majority of bank accounts are with banks who are at best indifferent to their personal customers most of the time.

 

[GaryMcEwan]

I made quite a profit on the share-save that I did over 3 years which I cashed in back in October of last year. Most people at my work do this as my employer matches the number of shares that you purchase each month. Might not be for everyone, but it certainly does right by me.

 

[najaB]

I made quite a profit on the share-save that I did over 3 years which I cashed in back in October of last year. Most people at my work do this as my employer matches the number of shares that you purchase each month. Might not be for everyone, but it certainly does right by me.

Nobody is saying that you can't make money on shares - it's plainly obvious that you can. However, anyone buying stock needs to be aware that there is no guarantee that you will make money and it's entirely possible that you'll lose out as compared to simply keeping your money in a tin under your bed.

Again, I bought shares at £3.60 which went up to near £5 and are now worth £2.31 each.

 

[GaryMcEwan]

Nobody is saying that you can't make money on shares - it's plainly obvious that you can. However, anyone buying stock needs to be aware that there is no guarantee that you will make money and it's entirely possible that you'll lose out as compared to simply keeping your money in a tin under your bed.

Again, I bought shares at £3.60 which went up to near £5 and are now worth £2.31 each.

Absolutely, but the caveat with my shares when the time comes for me to cash them out, if the share price drops below what I actually bought them for, the money that I get back is what I invested so I'm not out any money if the share price was indeed lower.

 

[najaB]

Absolutely, but the caveat with my shares when the time comes for me to cash them out, if the share price drops below what I actually bought them for, the money that I get back is what I invested so I'm not out any money if the share price was indeed lower.

Which brings us right back to my initial post on this sub-thread: you don't know that you'll make a return, you hope that you will.

 

[EssexGonzo]

I don't think that is correct. According to the FCA website (https://www.financial-ombudsman.org.uk/consumer/complaints.htm) Well, you are unhappy with their response - they haven't bothered.

When I had problems with an energy company who wouldn't consider my complaint (send by e-mail - evidence of receipt), just offered a token payment, I gave them a stated time to reply, which they didn't. Off to the regulator, sent all the evidence - again, e-mail. Compensation four times the original offer. Different regulator, I know but I have got dosh from the FCA (when I didn't ask for any, I just wanted a written answer to a technical question when the bank insisted on a phone answer as they hadn't got time to answer written questions; I also got a written answer).

Maybe too late in this case, but I would encourage you to push it, if you feel aggrieved. In my opinion the vast majority of bank accounts are with banks who are at best indifferent to their personal customers most of the time.

Absolutely this. You're within the 6-year time-out that sometimes applies (but not always) and the Financial Ombudsman will always (relatively) quickly tell you whether your complaint is eligible for their attention or not. You can start by phone to get an immediate initial response.

My wife works there. She also tells me that it may take a while for them to get to it but once you're in the system they're pretty good at getting things resolved.

 

[Bletchleyite]

Absolutely, but the caveat with my shares when the time comes for me to cash them out, if the share price drops below what I actually bought them for, the money that I get back is what I invested so I'm not out any money if the share price was indeed lower.

I assume that is specifically in the contract you signed, as that is not universally the case. You can lose your entire investment on regular shares. For instance, Flybe shareholders look likely to get just £0.01 for each of theirs.

Is this guarantee provided by your employer or a separately funded scheme? If the former, if your employer fails entirely you could get £0.00.

Just watch having eggs in the same basket, that's all.

 

[tony_mac]

He's talking about a share save scheme. It's a savings account with a share option scheme attached - there is no risk involved, except that you have lost out on the interest. (The schemes can pay an interest bonus, but currently don't due to the low interest rate).

 

[Bletchleyite]

He's talking about a share save scheme. It's a savings account with a share option scheme attached - there is no risk involved, except that you have lost out on the interest. (The schemes can pay an interest bonus, but currently don't due to the low interest rate).

Ah, so basically a bank account (presumably held by a separate organisation with FSCS membership?) on which interest payments are predicated by the performance of a given share? Fair enough.

 

[Dai Corner]

Ah, so basically a bank account (presumably held by a separate organisation with FSCS membership?) on which interest payments are predicated by the performance of a given share? Fair enough.

The way the one my former employer ran worked like this.

A price was set for the shares, being a little less than the market price on day 1 of the scheme.

We saved a fixed amount each month for three years or five years in an interest-bearing account.

At the end of the three or five years we could take the money plus interest, use the money plus interest to buy shares at the price determined at the start of the scheme and immediately sell them, or buy shares and keep them. I think income tax on any gain was payable if you sold your shares within two years.

You couldn't lose money unless you bought shares and subsequently sold them at a price lower than the discounted one set at the start.

 

[najaB]

At the end of the three or five years we could take the money plus interest,

Very few schemes pay interest on the savings these days.

 

[Dai Corner]

Very few schemes pay interest on the savings these days.

Very few cash deposits pay (a positive real) rate of interest these days. Things were very different in the era I'm talking about.

 

[Busaholic]

Very few cash deposits pay (a positive real) rate of interest these days. Things were very different in the era I'm talking about.

I was watching some old VHS recordings of Channel Four TV shows from the 1990s, complete with ads, a few months ago, and the building societies were jostling for position with rates of 12% common, and that was for Instant Access with not a huge minimum amount required! Halifax Instant Gold was one such, I remember.

 

[Bletchleyite]

I was watching some old VHS recordings of Channel Four TV shows from the 1990s, complete with ads, a few months ago, and the building societies were jostling for position with rates of 12% common, and that was for Instant Access with not a huge minimum amount required! Halifax Instant Gold was one such, I remember.

Of course you were also paying that on your mortgage, assuming you had one.

 

[Dai Corner]

Of course you were also paying that on your mortgage, assuming you had one.

I think my mortgage interest rate peaked at 15% and I was in negative equity too for a while. Fortunately there was plenty of overtime available where I worked.

 

[Busaholic]

Of course you were also paying that on your mortgage, assuming you had one.

Oh, yes, tell me about it! Increases of 1% interest in three successive months and, ultimately, selling at a loss, that after dear NatWest took us to County Court for repossession which, thankfully, the judge refused in view of our valiant efforts to keep our heads above water. A truly dreadful time for me.