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Mis-Sold Capital Protected Bond

Capital Protected Bonds offer you the opportunity to grow your cash while protecting your initial contribution. That’s why so many high street banks favour them, but you may not know you face the possibility of losing a significant portion of your assets if you cash in before the bond term ends.

If you’re prepared to invest in a Capital Protected Bond for the entire term, you can expect a full return of your capital regardless of any changes in the market. The FTSE 100 is often used as a performance indicator for these types of bonds, and any rise in the FTSE 100 can be reflected as profit to you over the agreed period.

The Capital Guarantee offered with the bond – this is the Capital Protected part – means the bank will absorb any losses to your funds, but they will also charge management fees for protecting your capital.

Have you been mis-sold Capital Protected Bonds?

Banks and financial companies have been accused of mis-selling Capital Protected Bonds. It has occurred when the bank has over-emphasised the potential for the bond to yield higher returns based on good previous performance – without having properly explained that external factors can prove highly influential.

For example, many customers got back only their original capital at the end of their bond term as a result of the global economic downturn. This led to major disappointment, particularly if the customer was somehow reliant on getting good returns.

Inflation will reduce the actual spending power of an investment product over time. In cases where only the original capital is returned, then, the true impact on the bond’s value is often viewed as a loss.

Capital Protected Bonds Claims

A poor return on your Capital Protected Bond is not grounds to stake a claim for having been mis-sold. However, if you were firmly led to believe that a decent return was practically guaranteed, then you may have a case. Your chances are greater still if:

  • You were either retired or close to retirement at the time
  • You had very little prior experience (or none at all) of investing
  • You were identified as a likely investor after receiving a cash windfall
  • You were advised to invest a large chunk of your savings in one go

How we can help

Claiming compensation for mis-sold Capital Protected Bonds is our speciality. We know what risks they carry, and who should and shouldn’t have been sold them. It’s our mission to help clients who may have been victims of mis-selling by helping them claim a significant rebate.

What’s the next step?

If you would like more information about Capital Protected Bonds claims, or to simply talk through your situation, call our friendly team of experts on 01204 565331 or email Alternatively, you can request a call back below and we’ll get back to you straight away.

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