CashNews.co
Predatory scammers and the loss of thousands of pounds – the dangers continue for the thousands of savers who were mis-sold investments in the unregulated £206 million Store First Limited self-storage scheme. This collapsed after promising lucrative returns that never materialised. It and three related firms were wound up in 2019 by the Insolvency Service to protect investors, many of them pensioners.
Since then they have been warned of the risks of data theft and crooks ripping them off with fake claims and compensation opportunities.
++ If you’ve been affected by this issue or feel you’ve been a victim of injustice, please contact consumer champion Maisha Frost on [email protected] ++;
If a regulated company goes bust the Financial Services Compensation Scheme (FSCS) protects up to £85,000 of the value of someone’s investments, pension or savings.
The regulatory processes of settling Store First’s affairs continue – one of the related firms was bought out and trades as Store First.
Self-employed gardener and modest investor Paul Baker, who in touch with Crusader recently, told of his struggles to understand what was going on. After a cold call in 2014 he took £7,500 out of a private pension to invest in a storage pod as a self-invested personal pension (Sipp). But then he was passed around as various financial advisers handling his affairs either folded or backed off.
Recently he received a letter claiming to be from the FSCS, offering the chance of reimbursement. When Crusader checked, the FSCS confirmed the document was a fake.
He has now received a legitimate letter with a proof of debt form from the Official Receiver as the liquidator. “But it’s difficult to understand and I can’t afford legal advice which might tell me my claim doesn’t stand a chance anyway,” a worried Paul pointed out.
If he did receive unsuitable advice from a regulated advisor or pensions operator it’s worth him finding out if he might be owed something. He has a submissions deadline. Crusader is supporting him with this.
The FSCS claims service is free and it would never ask for money. Its helpful contact centre number is 0800 678 1100. To check further visit https://www.fscs.org.uk/contact-us/ and https://www.fscs.org.uk/news/fraud/latest-scams-frauds/ [Paul’s name has been changed]
Expert guidance for investors: how to navigate official terms and complete a proof of debt claim form correctly
There is a time-limited claim opportunity for investors who have lost out because of the Store First liquidation and believe they were mis-sold in the first place.
While every claim will be considered carefully, coping with the formal language however compliant is not easy for many people.
Here expert Ryan Cullinane, insolvency manager at leading advisor Begbies Traynor https://www.begbies-traynorgroup.com, clarifies key questions on the debt form.
Total Amount of claim (£) (include any Value Added Tax). If the amount above includes (£) outstanding uncapitalised interest, state amount: This is the total amount of the creditor’s claim against the insolvent entity. Uncapitalised interest refers to any interest due on the debt up to the date of insolvency which is not principle debt. Typically, a creditor can only claim interest if they are entitled to it under a written contract or legal agreement, or if the creditor has demanded it in writing prior to the date of insolvency and made it clear that interest would be charged from the date of the demand.
Details of how and when the debt was incurred: The creditor ought to provide concise details such as the goods and/or services provided but not paid for, or the basis of redress sought that gives rise to the creditor’s claim.
Details of any security held, the value of security and the date it was given: If the creditor believes they have any security, they ought to estimate the value of their security held for example a mortgage or charged assets. The creditor should also confirm the date that security was given.
Details of reservation of title claimed in respect of goods supplied to which the debt relates: Retention of title is most commonly claimed in regard to stock. If the creditor considers there are retention of title rights in relation to this claim, the creditor ought to enter estimate the value of goods covered by retention of title. Retention of title may allow the seller of the goods to retain ownership of the goods until those goods are fully paid for, or other stipulated conditions are met.
Details of any document by reference to which the debt can be substantiated: The creditor should provide details of any documents which support their claim. This could include, but is not limited to: invoices, delivery notes, loan agreements, contracts etc. The creditor should note that the Liquidator may request copies of any substantiating documents referred to at a later date.