Mis-sold Storage Pod Investments
Storage pod investments have been in the spotlight in recent years with increasing numbers of unhappy investors reporting issues with their schemes. Most recently, SIPP provider Carey Pensions was taken to the High Court by a client who claims they were mis-sold a StoreFirst investment. The Financial Conduct Authority (FCA) was allowed to submit evidence in the landmark case, which is currently awaiting judgement.
Storage pod investments work by the investor buying a certain number of storage pods from storage companies such as StoreFirst, which then manage the rentals of these units to customers. It is the fees paid by these customers to rent the units that create the potential for a high return on investment.
Unfortunately, storage pod investments are unregulated, carry high levels of risk and are usually unsuitable for inexperienced retail investors. Despite these pitfalls, these storage pod schemes are often marketed to inexperienced investors as sound investment opportunities, leading to significant losses for the customer. In these cases it is possible for customers to seek compensation and recoup some of their losses.