Tan Kin Lian's Blog: Ask for a full refund now

Sunday, October 19, 2008

Ask for a full refund now

Dear Mr Tan
First, I'd like to THANK and APPLAUD you for being "the voice" of many low/middle-income Singaporeans especially the retirees who have invested large sums of money into high-risk products without realising the consequences.

My reason for writing this is, like these retirees, I am a victim of sorts . When I look into bank's products, my only concern is to invest in 100% CAPITAL GUARANTEED products. When I met up with the Citibank Personal Banker on several occasions, I stressed this primary concern to her. I even elaborated by saying something like "at the end of the tenor, I want 100% of my capital back". However, I was sold the Merrill Lynch Jubilee Series 8 product which had a 100% CAPITAL PROTECTION . I only realised this when I received the prospectus AFTER signing and paying for this investment.

When I brought this up, I received a 3-way telephone call from the PB's head and another person. I related to her my concern and how I was misled into believing that I bought a 100% CAPITAL GUARANTEED product. She assured me that I will get my 100% capital back based on 2 conditions :

1. I have to hold to maturity the principal amount
2. Nothing happens to Merrill Lynch

She said that our conversations are recorded so I should not worry.

REPLY
I advice you to lodge a complaint for mis-selling and to ask for a FULL refund of your money. If the bank does not agree, you should escalate it to Fidrec (www.fidrec.com.sg) or complain to MAS.

4 comments:

Anonymous said...: why must an uneducated uncle or aunty who knows little or no english accepts 20% compensation of their investment sum??

RMs hard sold them , mis-sold and cost them their whole retirement funds to go up in smoke and the media is telling that they are happy with 20% compensation( photos of smiling faces filled with satisfaction and contentment !!! )

where got such logic? tell me ?; October 19, 2008 11:57 AM
Anonymous said...: Hi

For Jubilee 8 Notes, you may want to know more about it at http://www.lioninvestor.com/merrill-lynch-jubilee-series-8-notes

There is a lot information about Jubilee 8 being shared at this blog.
Many Jubilee 8 investors have discussed and share their concerns at this blog. If there is any complaints to be made, it will definitely be good if it is a collective one.; October 19, 2008 2:53 PM
Anonymous said...: Hi

To be fair to every party involved in this saga. The FI should buy back all the bonds/note as
1) 100% for those just sign on and have not received any interest. (this actually cost FI 97%,(3% which FI has received from the Lehman as commission) to own/hold the 100% of notes)as they have the holding power till maturity of bond.
2) for those investors who had received the quarterly interest from their investment since day one , FI should buy back 100% -Interest received(eg,7.5% so far of the principal amount),this actually will only cost FI to pay to the investor for 80+% of the principal amount invested, and FI can hold 100% of bond/note till maturity of the bond series.

Sorry....for my simple minded suggestions.; October 19, 2008 6:31 PM
Anonymous said...: If the FI is willing to hold full responsiblilty to compensate the old and uneducated, they are indirectly acknowleding that the product is indeed unsuitable for man on the street. So what does it make a difference whether we are educated or not, young or old?? The prrominent difference i could think of is only the fine print should be big enough for us to open our eyes to see it. Yet many of us has put too much trust on the words of the RM and the big name of the bank. But should there be a gate keeper to stop the this product to be push to the market, we, does not matter educated or not, got $ also will not have any chance to smell / posioned by those toxic!!; October 19, 2008 9:53 PM