Providence Global savers step up bid to recover lost millionsComments Off on Providence Global savers step up bid to recover lost millions
SAVERS who lost thousands investing in a controversial “mini-bond” have formed a campaign group to drum up support for their cause.
Hundreds of pensioners lost their savings after the company selling the bonds, Guernsey-based outfit Providence Global, collapsed following a fraud probe into its US affiliate.
The Providence Bonds Investor Action Group has been set up to raise awareness of the case and try to recoup the cash.
Around 800 small UK investors lost £8.1 million after Providence was put into administration last year following the US allegations.
The two mini-bonds, which promised to pay 8.25% and 7.5% a year, are ineligible for the UK’s Financial Services Compensation Scheme, leaving savers helpless.
Frances Goodchild, who sits on the group’s steering committee and also represents another action group for savers who lost out on an energy mini-bond collapse, said the incident had been “absolutely devastating in some cases for savers”.
About 300 people have joined but the campaigners are looking for more people who may have lost money.
One woman said her elderly mother lost £50,000 investing in the bonds. “All she wanted was a decent return. It was not made clear enough that these were high-risk investments,” she said.
Deloitte, the administrators to Providence, said last week it was “highly unlikely” any money would be recovered.