GFC and the Margin Call – act now before Statute of Limitations expires

LETTER TO THE EDITOR

 

Sir – As we are approaching the six year mark of the shocking implications of the GFC, some people are finally gathering enough courage to explore the details of their losses.

 

For an alarming number of people, especially those who took out Margin Loans during this period, much of the blame rests on the shoulders of financial institutions who engaged in misleading and unconscionable conduct, professional negligence, and at times blatant deception.

 

The sad truth is that many investors would have saved hundreds of thousands of dollars if they were informed when they actually got into Margin Call territory, instead of months later.

 

Investor’s have six years to lodge a claim, after which you lose your rights to litigate, in some states like NSW on an absolute basis.

 

If the above sounds like you, here’s what options you have available to you.

 

Prepare whatever material you have, including any evidence that the Margin Lending provider delayed informing you that you had reached a Margin Call (usually 75% LVR), and make a submission to the Financial Ombudsmen Service. (http://www.fos.org.au/).

 

It however has limits on what claims it can pursue and how much in compensation it can claim (up to $280,000), but it is a worthwhile first step to review.

 

Secondly, you can contact the author of this letter, where we can share information, and discuss the possibilities of a class action with a number of interested legal firms, who specialize in class actions. Whether a class action proceeds or not depends on the number of people who can come forward with similar experience of professional negligence.

 

By emailing me you however make no commitment to proceed and neither will your information be shared with any person or organization without your prior express agreement.

 

But if you are going to act, do it today, because the Statute of Limitations, once passed, means you lose your rights to litigate, no matter how justified you may be.

 

To contact us in light of exchanging information or to consider joining a potential class action, please email at: margin.call.class.action@gmail.com

 

Michael Parisi

 

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  1. Phillip England
    Posted June 10, 2015 at 4:23 pm

    ANZ Bank permitted us to mortgage to the maximum in November 2005 with purchase of premises to move our business.
    This included part mortgage over our house.
    Searching historic interest rate rises, three rate hikes had occurred in the two years prior.
    Nine more rises during the next four years certainly crushed us.
    Would they not have had some forecast, being in the lending game, that more increases would choke a small business.
    Have not long been released from bankruptcy having lost partner, business, house and factory.
    Seems the bank wasn’t at all interested in our future. Theirs would still be rosy!

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