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A 25-year-old investor came within a day of being able to withdraw his $50,000 savings from stricken investment company Geneva Finance - but now says he may never see his money.
The company wrote to investors on Tuesday seeking a freeze on repayments until April in an effort
to stabilise its investment position and secure its long-term future.
The freeze announcement was made on the day the Auckland man's $50,000 investment was to mature.
He wanted to use the money to buy his first house.
"If the company goes into receivership, I don't know what I'm going to do, I really don't," he said.
"I have my parents' support so I wouldn't be out on the streets, but it is all my savings - my blood, sweat and tears."
The man, an analyst who did not want to be named, started saving six years ago, putting aside money even while he was studying at university.
"It's not hard when you have a savings plan, even if you are on a tight budget. I just managed as best as I could."
But he hasn't completely given up on Geneva.
"I still have confidence that I'll get some money back ... The company is being quite frank with what is happening and it hasn't gone into receivership."
Another man, who also didn't want to be named, told the Herald he had his entire $98,000 savings invested with Geneva. His investment was due to mature early next month.
Last night, he attacked the company's recent claims that it was doing well, saying it had misled investors about the state of its finances.
"What is surprising is what this company has put out in the past four months," he said.
"On August 28, they wrote to all investors saying what a good year they'd had ... They went on to say what a well-managed company they were, unlike Bridgecorp and all the others that went bust.
"I just hope I can get my money out."
Geneva Finance chief executive Shaun Riley last night said the company had no comment to make about its investors' misfortunes.
It has about 3000 investors, who are owed $138 million.
Consumers' Institute chief executive Sue Chetwin said there was a lot of concern about finance companies. She predicted Geneva's setback could be the "tipping point" for finance companies. Ten have collapsed in the past 18 months.
