Thursday, 10 January 2013

Money down the drain?


08/01/2012 Wine Investors £250,000 in the Red!

Investing in wine can be a risky business, warn Warwickshire County Council’s Trading Standards Service after consumers reported losing more than £250,000!

Trading Standards Officers are aware of a number of investors who spent over £250,000 each on ‘fine wine’ after being promised higher returns than those available from savings accounts or the stock market.

Many of the investors were approached following a sales cold call or junk mail leaflet.

Trading Standards Officers have discovered that huge commission fees charged by the wine sellers swallowed up most of the investor’s investment capital immediately. And, poor sales advice has meant that the wine they do now own is unlikely to ever accrue in price enough to cover their initial investment, never mind making a profit!

Fine wine is one of a number of ‘investment’ products which are unregulated, so consumers are largely unprotected. Whilst not all unregulated investment opportunities are misleading or fraudulent, investors are strongly advised to seek impartial and professional advice to avoid unscrupulous investment firms and bogus investments. Only deal with financial services firms that are authorised by the UK’s Financial Services Authority: www.fsa.gov.uk

 Please feel free to cascade this information to whom-ever you feel appropriate (including using the information in your newsletters/websites etc.). 

To receive email alerts direct to your inbox, email: simoncripwell@warwickshire.gov.uk

For more information on scams, visit: www.warwickshire.gov.uk/scams

Follow us on twitter: www.twitter.com/warkstss

Simon Cripwell
Trading Standards Officer
Warwickshire Trading Standards Service
Communities
Warwickshire County Council
Old Budbrooke Road Warwick CV35 7DP
tel. 01926 414039
mob. 07771 975570
My normal working days are Monday to Thursday

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