Fidelity’s bungling investment error cost me thousands

LAST October, I tried to transfer my M&G Isa, worth about £73,000, to Fidelity’s investing platform.

After some initial difficulties, the investment moved in December. However, Fidelity re-bought the funds rather than leaving my investment in cash, as I had requested. I wanted to buy three investment trusts.

I phoned and was told there was a long queue, so it might be better to write. I did this, but heard nothing.

I called again on December 17 and was told that no action was taken because the instructions were not valid. By then, share prices had risen after the General Election. I was promised an investigation, but nothing happened.

I continued to chase and, by February 14, I had been offered two £25 payments for the delay, neither of which I have received.

The investment trusts I wanted to buy have fallen in value, but not by as much as the M&G funds I was left in.

Finally, I sold these on March 13 and left the money in cash.

On April 7, I phoned again, saying that if I did not receive a satisfactory response I would contact you.

H. P., West Sussex.

It has taken a few weeks for Fidelity to untangle this mess.

When you called on December 9, to reiterate your wish to sell the M&G funds and invest in three investment trusts, you should not have been told you could write instead.

Investment trusts are traded as shares. You buy and sell based on a live trading price — this must be done by phone or online.

When you wrote, Fidelity should have spotted the mistake and contacted you.

Correcting this error would have been simple but, in March, you decided you did not want to buy the investment trusts.

Fidelity has therefore calculated restitution as if you’d bought the investment trusts in December but then sold them in March.

It will be placing £3,000 in your cash account to make good the difference. You have also accepted £500 compensation.

a spokesman says: ‘ We are taking measures to ensure we minimise errors in the future. We would like to offer our sincere apologies to Mrs P for misinforming her about the process to sell and buy investment trusts.’

as an aside: what a shame you decided to sell in March! the stock market — though volatile — has stormed ahead since then.

ON MARCH 5, I received a letter from E.ON to say my fixed tariff would end on April 23.

My charges for the year had been £1,600. If I took no action, I would go on to the standard tariff costing £1,889 for the year. But if I switched to another fixed rate, it would cost £1,444.

When I phoned, I got a message saying that, due to lockdown, only internet access was available for anything except emergencies.

I have tried to access my account via my computer and phone app but get a message saying I have no account.

B. J., Berkshire.

E.on acted quickly to put you on to the tariff you requested once I made contact. however, you told me that you still could not access your account online.

It seems that this is because you were using old details from when you had previously held an E.on account.

this has now been resolved and you can access your account by computer and via your smartphone app.

an E.on spokesman apologises for the problems you have had and adds: ‘Unfortunately, when Mrs J tried to contact us by phone, we were operating with fewer colleagues due to the pandemic and had been working to keep phone lines free for emergencies.’ WHEN I opened my M&S Bank credit card statement in March, I discovered £1,800 had been paid to five companies of which I had no knowledge.

I raised this with M&S Bank and it credited my account while it investigated. I assumed my minimum payment would be reduced to reflect this credit and therefore paid £315 rather than the £350 requested. A short while after this, I received a text advising me I had used 90 pc of my credit limit of £12,900.

I could not understand this, as my credit limit for years has been £15,000. Then, another letter said my credit limit had been reduced as I had made an underpayment. M&S Bank is refusing to reconsider.

M. M., Warrington.

I COULD start by giving a short lecture on the inadvisability of borrowing on credit cards due to the very high interest rates. there. I’ve done it.

a spokesman for M&s Bank says: ‘the customer’s credit limit was reviewed based on a number of factors, including the account being in arrears.’ But M& s Bank has now conducted another review and reinstated your previous limit.

It has also apologised that ‘the service experienced fell below expectations on this occasion’.

It has credited your account with £50 to apologise.

the message to take away from this is that, if you want to protect your credit limit, you should continue to make at least the minimum monthly payment requested while any dispute is investigated.

If you need to pay less, then phone your credit card company to agree an alternative payment.

Paying more than the minimum will reduce the amount you owe and the amount of interest you are charged, so there is no downside to doing this.