Lotto couple who won £1million want compensation from Queen's bank after 'wrong advice' left them with just £10k-a-year to live on

  • The couple from Devon are now hoping to win a substantial amount of compensation from the 320-year-old private bank
  • Allege they should have been treated as 'vulnerable people' due to the unexpected surprise of their overnight win in 2001

By Jill Reilly

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The bank used by the Queen is being chased for compensation by a couple who won £1million, but were left with £10,000 a year to live on after being given the ‘wrong advice’.

The unidentified couple from Devon who won the lottery in 2001, are now hoping to win a substantial amount of compensation from Coutts.

They claim the 320-year-old private bank advised them to put £650,000 into with-profits bonds which left them just £10,000 a year to live on.

Lost out: Private bank Coutts & Co, which counts the Queen among its clients is being taken to court by a couple who won the lottery and were advised to invest in underperforming bonds

Lost out: Coutts, the bank used by the Queen is being chased for compensation by a couple who won £1million, but were left with £10,000 a year to live on after being given the ¿wrong advice¿

COUTTS: 320 YEARS OF HISTORY

The Logo for Coutts Bank . REXSCANPIX.


Coutts is even older than the Bank of England which was founded two years later in 1694.

Coutts which used to be called Campbell Bank, was set up by John Campbell in London's Strand in 1692.

Its first bank outside the capital was opened in Eton in 1961.

Coutts used designers Ozwald Boateng and Stella McCartnet to design credit and debit cards.

Buckingham Palace has a Coutts cash machine.

The bank is mentioned in Gilbert and Sullivan's opera The Gondoliers in the lyric: 'The aristocrat which banks with Coutts; The aristocrat who hunts and shoots; The aristocrat who cleans our boots; The all shall equal be.

'We chose Coutts because they are the Queen's bank and we thought that they would be a safe pair of hands,' the couple told The Daily Telegraph.

 

They said they have spoken out about their case to warn other lottery winners - over Christmas 60 lottery millionaires will be created.

Lottery winners are offered a range of financial advice when they accept their windfall, although Camelot did not disclose if Coutts was one of the key banks.

The couple have submitted their case to the Financial Ombudsman Service, stating they were 'normal working people' who earned £42,000 a year between them before the win.

They allege they should have been treated as 'vulnerable people' due to the unexpected surprise of their overnight win in 2001.

The pair were sold with-profits bonds as a relatively low risk investment.

Although with-profits bonds were designed to withstand instability in global stock markets - by setting aside a proportion of the profits made in good years and using them to enhance the returns paid to investors in harder years - many have struggled to cope with phases of stock market instability since the start of the economic crisis in 2008.

Publicity: They said they have spoken out about their case to warn other lottery winners - over Christmas 60 lottery millionaires will be created

Publicity: They said they have spoken out about their case to warn other lottery winners - over Christmas 60 lottery millionaires will be created

A spokesman for the ombudsman service said they had received 348 complaints about the bonds last year and they had upheld a quarter.

A spokesman for Coutts told the paper: 'We can not comment on individual cases because of client confidentiality.'

After initially ruling against the lottery winners, the The Financial Ombdusmad Service said it would rule on the case in the next few months.

Earlier this year Coutts, was been fined £8.75million for ‘serious and systematic’ failings when handling money from suspected criminals or foreign despots.

City regulators criticised the private bank for taking ‘an unacceptable risk of handling the proceeds of crime’.

The fine, imposed by the Financial Services Authority, is a record amount for a money laundering offence.









 

The comments below have been moderated in advance.

How about the rest of us mugs who saved all our lives to be rewarded with little or no interest on our money.

Click to rate     Rating   381

Keep it under the bed I have never had a bank account for twenty year

Click to rate     Rating   100

Who cares how old Coutts is?!

Click to rate     Rating   179

650k divided up into 85k parcels on 2/3 year fixed rate bonds (paying up to 3.5% net until recently) would have brought in 20k pa and their capital would have been intact. Just needed a bit of managing?

Click to rate     Rating   250

I'm guessing they quit their jobs and that's why they now only have 10k to live on? Very, very foolish to sacrifice a steady income they could rely on before they tied up all their winnings!

Click to rate     Rating   237

I don't understand...if Coutts were found to be handling the proceeds of crime..isn't that illegal? Why just a fine? Why wasn't someone jailed and the bank made to suffer? Oh of course, because its the Queens bank and has the gvt in its pocket.

Click to rate     Rating   61

10K a year - lot of folk earn less than that, but yes if you have stopped work when earning 42 k a year you would find it a shock. But just pick up the newspapers, watch the news - not rocket science to know that for the most you need to invest a lot more than million to get a decent income these days

Click to rate     Rating   201

Sounds like they're wanting their cake and eating it too. Fools and their money are soon parted.

Click to rate     Rating   216

All banks should have on their headed paper "There is one born every minute"

Click to rate     Rating   141

i am sorry but did they not agree to those terms which they are now complaining about ? afterall it was only advice , they did not need to follow it

Click to rate     Rating   248

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