Property Investment Decision Reference 2022-0120

Case OutcomeRejected
Subject MatterProperty Investment
Reference2022-0120
Date06 April 2022
Finantial SectorInvestment
Conducts Complained OfDelayed 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.

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