Barclays Bank has admitted mis-selling an investment bond to two elderly pensioners from Lancaster, and now face a professional negligence claim for of 23,000 pounds.
The couple, Bob (73) and Lilian Baldwin of Waddington, Lancashire, were convinced by the bank to put 80,000 pounds of their savings into a bond which was promoted to them by the bank as being a cautious investment. However, the bond was speculative, and its subsequent underperformance lost the couple 14,000 pounds.
Mr Baldwin was forced to take a legal action after several unanswered letters of complaint to Barclays chief executive John Varley, and only after the Baldwins had taken professional advice were Barclays prepared to admit their professional negligence, and offered the Baldwins 23,000 pounds in compensation.
Note – This is just one occurrence of mis-selling by Barclays, who were fined 7.7 million pounds by the Financial Services Authority in January 2011. It is estimated that more than 12,000 clients have been victims of their professional negligence.