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Thread: Mis-Sold Shares

  1. #1

    Mis-Sold Shares

    About 18 years ago, a friend advised me to buy shares in a company called Telco. I didn't know anything about shares, so called Edward Jones.

    Once of their advisers came to see me and I told him I wanted to invest 5000 in Telco.

    He then said that Vodafone was a far better investment and he persuaded me to put all my money in Vodafone rather than Telco.

    The shares proceeded to fall and a few years later I sold them for half what I paid. I never dealt with Edward Jones again.

    I have just received a letter from Hallbrook a company claiming they can get me compensated if I was mis-sold shares.

    My Questions are, firstly do I have a valid claim, secondly is Hallbrook legit and finally what are my chances of reclaiming my loss.

    After all Edward Jones talked me out of what I wanted and into a poor investment?

  2. #2
    Hallbrook seem to be a valid company, specialising in helping you fill out the standard FCSC claims forms and charging you handsomely for the privilege. (You could fill these out yourself, of course, you don't need to pay a claims management company, but their specialists supposedly help you identify you exactly which breach of the FSA conduct of business rules you're claiming for.)

    And on that point, which rule was broken? You were not sold anything, you took independent advice on a purchase you were making. And stock market advice always comes with the caveat of "past performance if no predictor of future gains" and as such you may not have a case. Also, it was your choice to sell them at a low and not wait out for them to recover etc. etc.

  3. #3

  4. #4
    Was he right? Vodafone went on to be a massive global player worth 50 billion plus, and has paid a steady rising stream of dividends over the 18 years. How did your initial 'tip' of Telco - a company you didn't know anything about - do by comparison?

    Did Telco perhaps also lose half or more of its value in the dot-com crash 18 years ago? What happened to it? And even if Telco was a better end result it wasn't necessarily a dumb suggestion to buy Vodafone instead which seemed like a decent company with strong market position (if very expensive, back in '99/2000, just like other telecoms shares were).

    When you use a broker to buy shares you can do it with advice, or more cheaply, execution only without advice. If you go for the advised version you get access to their house recommendations which are opinions based on research, but not guarantees of performance over a specific time period. They are basically tips.

  5. #5
    Let me guess, it was a letter /cold call out of the blue. Either they will want administration fees to process a dubious claim which can only be filed if you give them accurate information; or you'll have to give them all your personal details for free and they will take a huge cut out of anything on the offchance it's successful.

    Like any ambulance-chasers, if you actually have all the details from the time, you could claim yourself, to the company that wronged you and then chance your arm with an ombudsman, and pay nothing to the ambulance chasers, keeping what's rightfully yours, all to yourself.

    However, if you tried to pursue it one obvious issue is - if they sold you something duff and you had a genuine complaint, why didn't you complain a decade and a half ago when you encountered the problem. Rather than waiting until the problem was so far in the past that it was totally unrealistic to get anything back and the company have archived any records relating to it.


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