Have you lost money to a self-storage investment scheme?
Since George Osborne introduced pension freedom in April 2015, many pension holders have been persuaded to trade their standard pension schemes for high-risk, unregulated investments made through SIPPs. These are often marketed as low risk, high return opportunities in non-traditional investment assets such as self-storage pods.
Sadly these types of ventures are often too good to be true and many people have lost large sums of money in such schemes. Savings they’d worked hard for all their lives have disappeared and left them facing years of financial insecurity.
The Store First scandal
A recent example of a scheme that has left investors out of pocket is that run by Store First – part of Group First Global Ltd, the company also responsible for Park First scandal.
Investors were seduced into buying storage pods housed in storage facilities. Store First’s slick sales pitch promised a guaranteed rental income derived from the pods that would go straight to the investor, minus certain bills and a small management charge.
In reality, many of these pods stayed empty for long periods of time and produced no income for investors, who were of course still liable for management charges. To make matters worse, investors had little hope of escape because it was unlikely they could sell these unprofitable pods on to anyone.
As the storage pods sat empty they cost investors a huge amount of money in accrued management fees, all with little hope of recovery.
Find out more about Store First.
Investors left with nothing
It’s a sad fact that this type of unregulated investment scheme is only really suitable for high net worth individuals with experience of investing and who understand the potential for loss and gain that comes with such products.
Regrettably, a significant proportion of those persuaded to invest were not told about the high risks associated with buying into a scheme like this and not warned that it was likely unsuitable for them. Instead, the investors who fell for the charms of the introducers and their sophisticated sales techniques have been left with almost nothing.
If you were encouraged to invest in the Store First scheme or similar by the promise of a guaranteed income, it’s possible this investment was mis-sold and you may be entitled to compensation.
Perhaps you were also given incorrect investment advice or not made aware of the risks of schemes like these, in which case you too deserve justice. Call 0800 193 1234 for a no-obligation chat with one of our specialist advisors to see what we can do to help.