Property Investment Decision Reference 2022-0120

• Case Outcome: Rejected
• Reference: 2022-0120
• Date: 06 April 2022
• Year: 2022
• Subject Matter: Property Investment
• Finantial Sector: Investment
• Conducts Complained Of: Delayed or inadequate communication,Encashment delays , Failure to provide correct information

Decision Ref:

2022-0120

Sector:

Investment

Product / Service:

Property Investment

Conduct(s) complained of:

Delayed or inadequate communication

Failure to provide correct information

Encashment delays

Outcome:

Rejected

LEGALLY BINDING DECISION OF THE FINANCIAL SERVICES AND PENSIONS OMBUDSMAN

This complaint relates to the release of proceeds on a property trust fund.

The Complainant’s Case

In 2007, the Complainant took out a loan for €1,000,000 (one million Euro) with a third-party

provider (Lender 1). This loan was taken out for the purpose of investment into a property

fund.

In 2011, the Complainant’s business was placed into receivership, and he was unable to

continue making payments on his loan, to Lender 1.

On 20 January 2012, Lender 1 wrote to the Complainant to inform him that, in light of his

financial difficulties, the interest on his loans would be ‘rolled up’ until his bonds matured.

On maturity of the bonds, the proceeds would be used to repay the loans.

The Complainant says that Lender 1 stated that if the proceeds of the matured bonds were

insufficient to repay the loans, the shortfall would be written off, and it asked the

Complainant to ensure that his address was kept up to date, in the event that there was a

surplus on the maturity of the investment.