Advice on banking problems for the elderly

Questioner

My single mother, now almost 90 years old, has managed her capital in the form of investments with a very large bank since my father died in 2000. Unfortunately, it now turns out that my mother does not understand anything about it. The bank people must have noticed this too when they regularly visited my mother to advise, read to impose, changes in her portfolio. My mother unilaterally ended these visits because she could not provide an expert response. She felt manipulated. After that, the bank limited itself to calling a few more times, of course in vain, to make an appointment and to sending letters with information that my mother did not look at but neatly filed away because she did not understand them. She reasoned 'no news (about bad developments), good news. ' (As far as the guidance from the bank was concerned, she was in the middle category, with the two extremes being 'doing everything yourself' on the one hand and 'leaving everything to the expertise of the bank people' on the other) In the meantime, my mother has been in a coma once and has undergone surgery twice under full anesthesia, which has not done her cerebral functioning in general and her memory function in particular any good. When my mother recently alerted me with the message that she had completely lost control of her investments, I got involved. What does the pile of carefully kept paperwork show? Between 2007 and 2009, my mother lost E 83,000 on her investments. Afterwards, up to 2014, another hefty E 30,000. I indignantly wrote a letter to the bank in which I accused it of not having properly exercised its duty of care. After all, they should have shouted at my mother in writing that a disaster was unfolding in her portfolio, instead of calling her rigidly and dutifully but uninvolved. For another one-sided manipulative conversation, which would essentially mean: 'We're going to do this, we're going to do that'. After reading my letter, the bank, shocked, invited me for a meeting on July 31st. My question to you is whether I would be right to accept this invitation. What else can the bank do than try to wash its hands of it? Would it be better for me to go directly to the KIFID with a complaint about this bank, which advertises on TV about its extreme knowledge of its (foreign) customers? Or would it be better for me to turn to a good lawyer with expert knowledge? Thank you in advance for your expert response.

Lawyer

Banks lend you an umbrella when the sun is shining and want it back immediately when it rains. I would indeed advise you to find a lawyer who specializes in this area and who is not intimidated by a bank. Banks are formidable legal opponents.

Lawyer

Thank you for your question. In order to assess your mother's legal position, I need more information about your mother's investment profile and what agreements have been made with the company regarding the management of your mother's assets. This information is necessary in order to determine the extent of the bank's duty of care in this matter and to what extent the bank has failed in this. There is no harm in talking to the bank and hearing their response. However, I advise you not to make any commitments or agreements or set them down before you have sought expert advice. I am a lawyer and have extensive experience with disputes regarding asset management. I am therefore happy to advise you/your mother further in this matter and, if necessary, to assist you. If you wish, you can contact me without any obligation and free of charge for further questions or consultation.

Lawyer

Day, I agree with you that your mother was not properly informed and that this fact could lead to a breach of duty of care(s). A banking breach of duty of care is unlawful and makes the bank liable for the (consequential) damage. I suspect that an internal complaints procedure can be followed first, which your mother can start herself, possibly with the help of a lawyer. Even after that, your mother does not need a mandatory lawyer at the KIFID. (As a result, your mother saves a lot on the costs of a lawyer) I actually advise you not to start the conversation without first having a lawyer or attorney assess the situation.