Cold-caller offered me 4.85% on my cash Isa but I'm worried it could be a scam
*I have been called by someone called Andrew White, working for De Vere Group. He said this was part of the hotel chain and also "Europe's largest financial research house". He wanted me to take out a cash Isa for my full £5,640 allowance. He said his firm "scoured the market for the best rate" and it would be one I could not match on the high street. On his first call he recommended an Isa from Barclays Bank, but on the second – a week later – it was from HSBC.*
*Eventually, he proposed a one-year fixed rate Isa at 4.85%. But when the Isa paperwork was emailed to me the bank had changed to JP Morgan Chase. Am I right to be suspicious? *PD, Birmingham* *
White has nothing to do with either De Vere Hotels or a second De Vere, which specialises in financial advice for expatriates.
The rate offered is ludicrous. The best we can find on Moneyfacts is 2.25% at MetroBank, or 2.05% at Nationwide. HSBC, in common with other banks, does not use intermediaries to sell cash Isas.
You were told that the rate is high because there is a "£40m allocation and it's bulk buying". That's also nonsense.
The form he forwarded is made up. JP Morgan Chase is a US bank with little UK involvement. JP Morgan only sells stocks and shares Isas, not cash Isas. All genuine Isa applications demand a national insurance number – missing on this form. The legal conditions are a meaningless collection of phrases cut and pasted from legitimate sites.
You were given what claimed to be a Co-op bank sort code to send your money – but the code does not belong to the Co-op. And the account name Investeco looks like an clumsy amalgam of UK investment house Invesco and South African controlled bank and investment group Investec.
If you had sent your £5,640, you would never have seen it again. We confronted White, but he told us not to waste his time before putting down the phone.
What's going on here is something called "cloning"— using details from legitimate companies, in this case name, address and website, to lever cash out of unsuspecting investors. The FSA had nearly 150 complaints of this practice in the second half of 2012 alone. It warns investors against responding to any cold calls.
*This week's column is guest-written by Tony Levene.*
*We welcome letters but cannot answer individually. Email us at **consumer.champions@guardian.co.uk** or write to Bachelor & Brignall, Money, the Guardian, 90 York Way, London N1 9GU. Please include a daytime phone number* Reported by guardian.co.uk 4 hours ago.
*I have been called by someone called Andrew White, working for De Vere Group. He said this was part of the hotel chain and also "Europe's largest financial research house". He wanted me to take out a cash Isa for my full £5,640 allowance. He said his firm "scoured the market for the best rate" and it would be one I could not match on the high street. On his first call he recommended an Isa from Barclays Bank, but on the second – a week later – it was from HSBC.*
*Eventually, he proposed a one-year fixed rate Isa at 4.85%. But when the Isa paperwork was emailed to me the bank had changed to JP Morgan Chase. Am I right to be suspicious? *PD, Birmingham* *
White has nothing to do with either De Vere Hotels or a second De Vere, which specialises in financial advice for expatriates.
The rate offered is ludicrous. The best we can find on Moneyfacts is 2.25% at MetroBank, or 2.05% at Nationwide. HSBC, in common with other banks, does not use intermediaries to sell cash Isas.
You were told that the rate is high because there is a "£40m allocation and it's bulk buying". That's also nonsense.
The form he forwarded is made up. JP Morgan Chase is a US bank with little UK involvement. JP Morgan only sells stocks and shares Isas, not cash Isas. All genuine Isa applications demand a national insurance number – missing on this form. The legal conditions are a meaningless collection of phrases cut and pasted from legitimate sites.
You were given what claimed to be a Co-op bank sort code to send your money – but the code does not belong to the Co-op. And the account name Investeco looks like an clumsy amalgam of UK investment house Invesco and South African controlled bank and investment group Investec.
If you had sent your £5,640, you would never have seen it again. We confronted White, but he told us not to waste his time before putting down the phone.
What's going on here is something called "cloning"— using details from legitimate companies, in this case name, address and website, to lever cash out of unsuspecting investors. The FSA had nearly 150 complaints of this practice in the second half of 2012 alone. It warns investors against responding to any cold calls.
*This week's column is guest-written by Tony Levene.*
*We welcome letters but cannot answer individually. Email us at **consumer.champions@guardian.co.uk** or write to Bachelor & Brignall, Money, the Guardian, 90 York Way, London N1 9GU. Please include a daytime phone number* Reported by guardian.co.uk 4 hours ago.
