A bank operating in Malta since 2004 has been ordered to repay over €20,000 to a 75-year-old investor after selling her complex financial products that she did not understand, leading to significant financial losses.

Upholding a decision by the Financial Services Arbiter, Judge Wenzu Mintoff condemned Me Direct for breaching ethical and legal obligations by persuading an elderly woman to invest approximately €82,000 in financial products she was ill-equipped to assess.

The Court decided that since the woman had lost over €20,000 through this abusive investment, Me Direct should bear the consequences and repay the losses sustained by her.

The issue dates back to 2021 when Gemma Vella, then 75, was convinced by Me Direct bank representatives to invest around €82,000 in various financial products tied to funds that were based entirely on equities (shares).

The bank claimed that Vella had made these investments after completing regulatory documents, including an ‘appropriateness test’ and a ‘suitability report.’

Both of these documents are integral to the investment process and are designed to protect the client’s interests. However, while the bank insisted that Vella had signed all the necessary documents, the Court rejected this assertion, noting that Vella was unable to read or understand English, making it highly unlikely that she comprehended the associated risks.

Me Direct also categorised Vella as having managerial-level experience in finance simply because she mentioned following financial discussions on Facebook and being a director of a family company.

The Court strongly criticised the bank’s conduct, stating that it was evident the elderly woman was vulnerable and had been exploited.

As a result, Me Direct was ordered to reimburse Vella €20,378 for her losses up until the point she instructed the bank to redeem her savings.

Me Direct has been operating in Malta since 2004 and is based in Sliema. It describes itself as “a bunch of pros working from all over the world, helping over 150,000 customers just like you.” The bank boasts that “no matter the size of your account, you can count on us to play it safe.”