Securities-Backed Lines of Credit (SBLOC) Attorneys Based in New York

Often promoted as an easy, low-risk investment product, securities-backed lines of credit (SBLOCs) in fact come with many risks which the average investor may not be aware of. The SEC has recently warned that the number of firms offering SBLOCs has been increasing. If you have suffered unjustified losses due to the misinformation provided by your broker or have been unduly pressurized to invest in SBLOCs despite your lack of understanding, you have legal recourse.

The attorneys at Weltz Law can help you explore your legal options and assist you in making a positive recovery. Call (877) 905-7671 now.

Securities-Backed Lines of Credit (SBLOC) Explained

SBLOCs are often marketed as a quick and easy way to liquidize assets within a given portfolio, freeing up cashflow. This is achieved by borrowing against other asset holdings within the portfolio. Requiring only monthly interest payments, the value of the assets is regarded as collateral, making it an outstanding line of credit. However, the investor can continue to trade assets while holding a SBLOC and the principal amount can be paid back at any point they wish. Stocks, bonds, and mutual funds can be held as collateral in SBLOCs and they are an attractive option for their flexibility, ease of use and the many opportunities that are freed up with an increased cashflow, such as the purchase of real estate, home improvements, vehicle financing and more.

Proving SBLOC Losses

The SEC has recognized that the facts surrounding SBLOCs leave huge room for misinterpretation and misrepresentation from broker to investor, whether deliberate or unintentional. As such, they have published additional information regarding the risks of investing in SBLOCs and advising investors to take note of how they are marketed. Although SBLOCs are often marketed as a way to increase portfolio value, they also expose the investor to higher market volatility amongst other risks.

Recovering Damages from SBLOC Losses

Your broker is duty bound to ensure that you are fully cognizant of all potential risks and rewards associated with an investment product before investing on your behalf. However, it has been proven many times that not all brokers exercise their duty to the highest degree of care. Some may have failed to fully consider if SBLOCs fit with your financial goals and risk profile before recommending it, whereas others may have been pressurized their clients to invest in a certain product because of the financial gain they stand to receive.

Meet with One of Our Attorneys to Discuss Your SBLOC Losses. We Represent Clients Nationwide.

Have you been unduly pressurized or misguided to invest in SBLOCs despite not being fully aware of the risks? If you have suffered unjustified financial losses due to broker negligence or fraud, you have legal recourse. Our knowledgeable attorneys at Weltz Law are here to help with a collective experience of over 30 years in securities litigation. We can assist you with exploring your legal options and starting the recovery process.

You can reach Weltz Law at (877) 905-7671 or via the form online to schedule a meeting regarding your case.