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Lotto couple who won 1million want compensation from Queen's bank after 'wrong advice' left them with just 10k-a-year to live onThe couple from Devon are now hoping to win a substantial amount of compensation from the 320-year-old private bankAllege they should have been treated as 'vulnerable people' due to the unexpected surprise of their overnight win in 2001
17:25 GMT, 22 December 2012
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: 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
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
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.