Indications are that as part of a national marketing campaign to sell Van Kampen Senior Loans to conservative investors, Merrill representatives told their clients who had funds in CDs that they could obtain a better interest rate, without any additional risk, by switching to Van Kampen Senior Loans. Investors were told that while the rate of interest might go up or down, the principal sum invested was safe.  However, the statements regarding the relative risk were untrue, as investors who switched have now learned, with losses approaching 50% of the amount invested.  The Van Kampen Senior Loans carried risks far greater than CDs and investors have suffered serious losses to prove it.

A CD is generally considered a conservative low risk investment.  If you switched into a Van Kampen Senior Loan thinking it was as safe as your old CD, you may have a valid claim for fraud or breach of fiduciary duty against your broker.

If you have questions regarding Van Kampen Senior Loan losses, please feel free to give us a call at 1-800-306-6010 or contact us online.