Have you lost money though a MARGIN LOAN?

I am looking to make contact with ordinary people who have lost money through a Margin Loan(s).

I am gathering information with a view to launching a class-action against Australian-based banks/financial institutions and Australian Financial Advisors.

At this stage, I just need basic information from people who have been affected by Margin Loan losses, to see if a “Cause of Action” can be established. Unless there is very solid grounding for a case, litigation will not proceed.

Please email Woollahra2025@hotmail.com with answers to the following:
• Name of your bank/lending institution;
• Name of your financial adviser;
• Estimate of the amount you have lost;
• Amount of your Margin Loan;
• Your contact details please.

Regards, Elizabeth

PS if you are fortunate, and have not been caught up in a Margin Loan loss, then please pass on my email address onto someone you suspect may have been, or will know someone who has been.

PPS If you are classified as a “sophisticated investor” {you know who you are} then unfortunately, I cannot help you, but I’m interested in hearing from your friends!

There is power in numbers!!!

What would the basis for your case ?

What is the argument you suggest as to why the banks or margin lenders would be culpable for losses you incurred ?

so..... let me get this straight. you've lost money in the recent downturn, and you want someone to blame. because investment markets always go up right???

You'll have a hard time suing a margin loan provider, a financial advisor might be your better bet. But no doubt if you've used a financial advisor you've signed a statement of advice which outline the risks of a margin loan. If thats the case good luck. I just hope your advisor was sloppy or else your going to have a hard time suing everyone.

When I lose money on the horses should I sue the booky, the horses, the trainers, the race track or should I look at myself???

I suggest that you BLAME yourself or as in my case l blame MYSELF. The results from greed and desperation for short term cashflow should not be BLAMED on others.
I don't think a valuable forum such as this should be wasted with "Hair Brain" ideas with no real criteria to establish the basis of claims is put forward.
Regards

Denis

You don't LOSE money through a MARGIN LOAN...you lose money when the underlying security goes down in value.

You may want to re-read that statement carefully.

The margin loan only amplifies the size of the loss (or gain ), through leverage. It's not the loan itself that causes the loss.

Good luck trying to round up sympathy stories...there will be a few. But they will be caused by the underlying shares/MF's losing value, and NOT the margin loan.

Welcome to the forum by the way, hopefully you can hang around after you've got your class-action numbers.

Rgds, Chris


Edit: How much money would you have "LOST" if you had taken out a 40% LVR margin loan against KCN last November?? Please post your response.

Nice run!

Attached Images

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Oh yes by all means let find someone other than ourselves to blame. Class action - what rubbish!

I'm certainly not what you would call a "sophisticated investor” but I do take responsibility for my own actions and am wise enough to do my own research no matter who gives me advice. I'm certainly not going to hand over my money unless I understand the implications of what I am doing and have covered reasonable continigencies. People who blindly follow advise with no real understanding only have themselves to blame. With the enormous amount of free information and opinions available there is no excuse to be ignorant these days.

Yes there are people who lost money - I am one of them, however there are also people who made lots of money using margin loans.

Yes, at the end of the day we are all responsible for our actions but I believe that some "devil forces" are manipulating market and no matter how “sophisticated” you are the world will always turn against you. Looking at the graph I can see where Liz is coming from. There may be bit more to her story beside Margin Landing and bad luck.

Welcome to the ASX cassino! Dare to win against the house?

PS. Yes, I also lost my money in ASX cassino. That didn't put me off. It fired me up and I can't wait for right moment to enter the market again. Expensive but very voluble lesson.

"Welcome to the ASX cassino! Dare to win against the house?"

Hmmmm...I would say that not having tested strategy in place, Stock Market is a very expensive place to be...
If you do not know how to win against ‘the house’, do not play with matches.

Wow, you guys are so defensive!!

In truth it is highly likely that there has been some reckless and irresponsible margin lending done by some lenders, particularly to unsophisticated investors (note that the OP quite specifically excludes sophisticated investors).

You only have to take a look at what happened with Storm Financial to get the sense that there has been some crazy margin lending going on, so why not have a crack at the lenders if you can prove that people have been recklessly sold margin loans without being given proper advice?