30/11/2020
Dear Etoro, To Avi, Ira Morstyn, Simon Peters, Yoni Assia
I`m making an official complaint no. 5, which I am calling
“5. MISREPRESENTATION, poor quality and lack of information, misleading advertising, untrue reviews (2, 3, 4, 5), poor customer services”
which will be a base to a claim for personal and financial damages.
Reasons for this case should be well known for the above, but details and evidence can be submitted on request. Main headlines are:
A. Etoro PROBLEMS and consequences for me
- Misrepresentation,
- Quality or lack of information provided to the client, and worse – resulting in further misrepresentation
- General admin/customer services (including custody/safekeeping services)
- Terms of contract
- Unauthorised business being offered or carried out
Please note, with exception of 1, these headlines represent exact complaint categories on CySEC, for ease of filing complaints with them.
- MISREPRESENTATION – deceiving into signing a contract (also by drawing users to the website from sites that have misleading Etoro`s reviews, information) using misleading, unclear and not applicable to place of residency (UK) information etc.
Inaccurate, misleading Advertising of being FCA regulated when opening account in UK (whereas there are two entities UK and EU, and in fact none of them is FCA regulated in full, in fact not at all for crypto assets, which are the key advertised Etoro product!)
Misleading information what is FCA regulated and what isn`t. Confusing information regarding applicable regulations and users protection.
FCA should not even be mentioned in any advertising and carefully used in any reviews or description of company business, as by default UK users or European users are signed up as Etoro EU anyway. This is where Etoro should make that personal phone call and explain the differences.
Etoro (EU) account is opened as default for UK users, instead of Etoro (UK), making them believe they signed up to the FCA regulated company praised on all review sites. No advice at registration is provided which CIF is better, or more suitable, what are pros and cons. User is not even aware he signed up to CySEC instead of FCA!
These are just examples, there is more evidence available on request.
I started trading in June but was only called in March as I started doubting in safety of my funds. I was reassured they are protected up to 75,000£, which up to this day I don`t think was true, as Etoro EU is no regulated by FCA. Etoro contacted me 6 months after I already deposited my savings, unaware that cryptos are not regulated by any body and all Etoro`s false advertising (and misleading reviews on websites) of FCA regulation turned out to be not exactly true.
In particular, traders of crypto assets like myself where 95% of my portfolio were crypto, should be contacted, consulted and asked to sign a separate document that they understand that if anything goes wrong with crypto positions or crypto assets on the market, user cannot complain to Obdusman and cannot use the £75,000 protection fund from FCA. I was not aware of it, I wasn’t made aware of it by Etoro. I only realised that much later when I
carefully read T&C when Etoro said they decided to terminate my account.
Poor and incomplete advice and information regarding complaint procedures. – see terms of contract
Lack of policy and step by step procedures regarding account termination. – see terms of contract.
Lack of advice what to do with EtoroX wallet in case of account termination – – see terms of contract.
5.3 General admin/customer services (including custody/safekeeping services)
Attempted to appropriate 400$ of my crypt assets in EtoroX wallet. Etoro had over100 days to notify me that I also have to withdraw from the wallet before termination of account, as otherwise access will be blocked and I will lose that forever. I asked them few days before end of month as they confirmed “it was folly of them not to mention it”, i.e. I would lose access to account and had no change to withdraw my cryptocurrencies. I could not raise complaint or appeal as my account would not exist. I feel that Etoro would do anything they could to not give me those assets. A big company like them should have clear, plain, logical procedures what to inform user when his account is about to be terminated. Main point should be, withdraw everything from EtoroX wallet. This protocol, procedure either don`t exist in Etoros appalling management or was intentionally not mentioned, to keep my money!
Negligence, patronising, not offering to talk or discuss issues, using illogical excuses against common sense to explain their mistakes, errors, lying, passing devastating news over email, no chat or phone call, regional manager in charge of me never replied to my emails?
30 days was not enough time for me to find specialist lawyers and prepare against notification of account termination
For more evidence see separate claims/complaints “1. Negligence …”, “4. Appropriation…”
5.4 Terms of contract
Poor and incomplete advice and information regarding complaint procedures.
Etoro only offers appeal to Ombudsman withing 4 months, again, that`s not enough time to gather all evidence, review 9254 trades, study T&C, carry out relevant industry searches and draft substantial appeal with help of lawyers, in particular in summer (holiday season). 6 months should be minimum for complex cases.
Lastly, Etoro should mention that there are other forms to complain against them. They make it look like Obbudsaman is the only way, but they fail to inform that complaint can also be made directly to CySEC! Should users knew about this, they would appeal in more cases. Should Etoro notify users of that possibility, Etoro would be more careful not to have a complaint that can be made to CySEC. I believe CySEC makes it clear than complaint procedures, and compensation fund, should available and thoroughly explained to users.
Lack of policy and step by step procedures regarding account termination:
E.g. withholding information for over 100 days that EtoroX account will also be blocked and terminated. Intentional ignoring of users assets in EtoroX wallet and no notification that it will also be closed and that all assets have to be withdrawn too or access will be lost forever. Attempt of appropriation/stealing in my view.
Lack of policy regarding EtoroX wallet termination.
This was not presented to me, so I assume there is no such policy drafted.
5.5 Unauthorised business being offered or carried out
Etoro (EU) account is opened as default for UK users, instead of Etoro (UK) with FCA regulation. No advice at registration is provided which CIF is better, or more suitable, what are pros and cons. User is not even aware he signed up to CySEC instead of FCA
B. REQUIRED ACTIONS FROM ETORO
- Settle my damages as in Complaint 10.
- Review, update, re-order and send to CySEC and FCA for comments the T&C so they show clear and plain information and explain what is and isn’t covered at the beginning of document. Ask users to “tick off” separate parts of T&C regarding regulations, not just one “tick” for whole T&C.
- Keep advertising banners accurate. Mention “account termination is Etoros right and your Risk” to user with Asterix * next to CFD trading risks.
See the Evidence and Gallery – work in progress.
Available on request. Separate document can be provided with exact calculation of losses.
D. CALCULATION OF FINANCIAL CONSEQUENCES.
See My Damages and Etoros Costs.
This complaint is part of series of complaints that supports my whole case, see Claim 10 for summary. I reserve the right (and freedom of speech right to advise other users) to also report this the CySEC, FCA and other applicable regulating bodies.
If you had similar problems, or agree with me, please leave a comment, or contact us. Regards, Platinum Joe.