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IG INDEX DILEMMA, please Help

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I seek some urgent advice.

Background

I applied online for a CFD account with IG Markets back in early 2007, and received an instant email in my account after submitting my application. It stated that my IG Markets account would not be automatically opened, but instead manually looked by the member of an account opening team.

 

Few days later I got a call from one of their account excecutives citing that they are unable to open me an IG Markets account but have opened me a standard IG Index Account instead for me to use. And after a few months considering my trading activities they would review to also open up an IG Markets account. There was no paper work no agreement or any signatures taken. No Risk Disclosure Notice signed either. And needless to say I never applied for the IG Index product it was literally shoved on me as a substitute.

Later that day I received an email by the same person who I spoke to, with the contents containing a standard welcome, username, password, and a url linking to the dealing handbook page.

 

I tried using IG index spread betting service for a few weeks but due to the high nature of low margins and high risk involved I wasnt very keen on it. So again after a few months requested them to open me a IG Markets account again. And again I was told I need to have 20k-30k of liquid funds in order to be opened that IG Markets account. Also was told that virtually Spread betting is the same as CFD's so I am better off using Spread Bets via IG Index, according to their Account executive.

Downfall

I started using IG Index actively end of 2007 till start of 2008, IG index has this option where bets get automatically rolled over, I placed a trade which was on a Friday which got rolled over, markets close from Friday evening till Sunday 11:30pm. I called their dealing desk to close the rollover as it wasnt possible to do it online (website dealing platform wasnt allowing it) but thier line was constantly busy, so my bet got rolled over till Midnight Sunday. Markets reopened in the UK Monday morning, my position was in a total loss from a postive balance of 1.5k due to some financial catastrophe (Lehman Brothers Bankruptcy), it negatively impacted my bet. My position was down by -27k by monday I still did not close my position and it got rolled over again. On Tuesday afternoon the markets recovered enough to bring my loss down to -17k and IG index emailed me regarding margin calls or otherwise they would close my positions at a loss. Before the end of the day I was closed out and stuck with a loss, if my positions were remained open when markets finished trading my loss would have been further down to -5k or less.

 

So the thing what I didnt understand was when my position didnt have enough margin(funds) why did they let it dip down to a loss of -27k , especially when I didnt have any credit limits on my account. And when markets were improving and my loss decreasing why was it then only they decided to close me out???

 

 

AfterMath

It was a shocking hit I spoke to IG people and they asked if I owned any property in my name and whether I could pay the -17k balance. Which I couldnt and dont own any property either.

So they happily suggested me to make monthly payments of whatever i could afford to without signing any agreement. I proposed a minimum payment and started paying ,late and even skipping months they never said anything. Probably were sleeping or something.

About over an year they asked me to revise the payments by a significant increase and also sign a settlement agreement with a few unusual conditions :

 

1. I accept and wont dispute the debt.

2. I will not show this to anyone else and it would remain confidential between IG and myself.

 

Good Luck or Bad ??

Ok I was moving places so the agreement kinda got lost in the process, its somewhere but I never got around finding it properly. 6 months pass by and they start freaking out by emailing me regarding the settlement agreement to be posted ASAP or the agreement would be void and they would pursue legal route to claim the full amount instead , I still havent got around finding it, I kinda told them I did post it maybe got lost in the post, so will post em my copy if I can find it. I know its somewhere but its been like more than an a year since they gave me that agreement. And I keep getting nagged about it every month from IG index.

If I dont find that document and submit it to them would the Agreement really be Voided/cancelled this way?? They never got around sending me a second copy to sign or anytihng.

 

Iam sorry this has been a rather tedious long story, but could someone tell me where do I stand??? Is it just me or have they been trying to cover something dodgy in regards to my consumer rights and protection,etc??

 

Thanking you in anticipation :)

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I'm not experienced on these things but they may possibly have fallen foul of the regulator in some way by letting your position fall drastically ? As you applied online they would only need to show a 'tick' box that you agreed to their t's and c's - The Consumer Credit Act 1974 (Electronic Communications) Order 2004 came into force in December 2004 any online agreements entered into prior to this date still need a signed executed credit agreement.

Electronic signatures weren't considered valid until this date.


PLEASE NOTE - I am not a legal expert, what is stated is my own opinion and from what I have learnt from this forum and my own experiences.

 

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Although thinking about it now, it may be that the other accounts that they gave you (and not the original one you signed up for online) have completely different terms in them possibly ?


PLEASE NOTE - I am not a legal expert, what is stated is my own opinion and from what I have learnt from this forum and my own experiences.

 

DEBT COLLECTION LETTER/SAR/AGREEMENT TEMPLATES ARE HERE - http://www.consumeractiongroup.co.uk/forum/content.php?65-legislation

 

IF WE HAVE BEEN HELPFUL -PLEASE, PLEASE, PLEASE GIVE A DONATION TO HELP US TO CONTINUE HELPING YOU

 

I AM HAPPY TO RECEIVE PM's AND I WILL RESPOND IF I FEEL I CAN ASSIST BUT WHEN YOU DO CAN YOU PLEASE PROVIDE A LINK TO YOUR THREAD ON WHICH YOU WOULD LIKE ME TO COMMENT - THANK YOU

 

IMPORTANT - If you are sent a private message directing you for advice or support with your issues to another website,this is your choice.

Before you decide,consider the users here who have already offered help and support.

Private message facilities are offered for users to communicate issues that are/or could be seen to be inappropriate for posting on the main forum.Site rules explain this in more detail.

If you are approached by private message with a view to asking you to visit another website,please inform the site team via the report icon.

 

Forum rules - http://www.consumeractiongroup.co.uk/forum/forum-rules-please-read/9-forum-rules-please-read.html

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Thanx 42man for your reply . I think Iam getting at what youre saying and it made me scoop out the customer agreement terms and conditions of both IG Index (igindex.co.uk) and IG Markets (igmarkets.co.uk).

Both dictate the agreement between the client and the individual company, so in my case I have ticked the online box accepted their t&c during the application for IG Markets account. And I can confirm that with the automated email which I received by IG Markets in my mailbox confirming my application submission.

But as I mentioned that account never got opened and was opened a substitute IG index account without signing or applying for it. So it's IG Index who have the claim.

 

Also I did a bit of research via companies house and came out with the following results. Iam not sure if they are of any significance or not.

 

 

Name & Registered Office:

IG MARKETS LIMITED

CANNON BRIDGE HOUSE

25 DOWGATE HILL

LONDON

ENGLAND

EC4R 2YA

Company No. 04008957

 

 

Name & Registered Office:

IG INDEX LIMITED

CANNON BRIDGE HOUSE

25 DOWGATE HILL

LONDON

EC4R 2YA

Company No. 01190902

 

They are both seperate entities but sister companies which come under the corporate group IG Group, which floats on the London Stock exchange.

 

My question is if I never had any application nor agreement with IG Index does their claim have any legal standing?

To put it in a less complicated example would be like applying online to Brittannia bank for a financial product, they reject the application and instead substitute me with a different financial product with Smile without every having to go through an application process.(assuming they are seperate companies but sister companies under the parent company Cooperative bank).

So would tick boxing Brittania's t&c online dictate my agreement with Smile with thier different financial product??

I also have to check whether CFDs and Spredbetting are governed by the Consumet credit act.

 

Thank you , awaiting your replies :)

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Too many dodgy company's when it comes to Financial Spread Betting!

I have been doing this for years...its an excellent game, but its got to be played with the most TRANSPARENT & HONEST brokers.

As far as i'm concerned, IG is NOT one of them!:-x

 

Along with the likes of many in this field, TRANSPARENCY is only existent in technical terms...i.e., they will defend the left knacker out of their respective systems, unless you can trawl and counter the trash!:-x

For example..IG "net off" positions at close of markets!..i.e, close your position, and re-open it at the opening price, ADJUSTED with their overnight charges, as its a "rollover" position.

This is very confusing, as it knocks out your average, UNLESS, like myself, you create an excell file and log down individual positions, which then spits out the average :rockon:

 

Best ones are, without a shadow of a doubt, Paddy Power, Capital Spreads:clap2:

Their TRANSPARENCY is second to none....deducted rollover charges are clear as crystal, so is profit, balance etc:whoo:

London Capital Group own Capital Spreads, and Paddy Power use their platform...probably for a fee!

 

I have tried LOADS, but hese guys are in a league of their own. Even the SPREADS are the TIGHTEST!:whoo:

Their stop-losses are automatically added to each trade, which you can adjust, depending on your capital.

 

I am at the moment trying out CMC (Brand new platform), World Spreads etc, as i am looking at some brokers who DO NOT insist on stop losses!...even though its safe to have these (unless the dodgy geets whack you out on "gapping"!), it hinders my strategy, as it eats into your capital, hence, swallowing your resources in the process....subsequently can lead to a margin call!!!!!!!!!!!!!:-x

 

The way you have described your opening post, it looks like IG definately are guilty of some wrong doing!

I have seen a RECENT article, implicating them in a CFD reprimand, over dodgy dealing...(i will have to search the web for it, but i did read it a few days ago)...so i think they may want to avoid you taking any litigation, especially when they have just been fined (i think) for some form of client dis-honesty! (Don't quote me on it, but i will try to locate the news story)

 

Their is no doubt, an element of greed on your part for having a position which clearly out weighs and logical control...but depending on your initial deposit (which you have not mentioned)..i think your liability should be limited :smile:

 

Marcos

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