Claims management companies are targeting Basset & Gold investors with offers to help them recoup funds from the collapsed bond provider, despite it being free to make a claim directly with the Financial Services Compensation Scheme (FSCS).
Several law firms have taken out Google ads that now appear at the top of results when searching for Basset & Gold, which fell into administration last month.
The firms claim to be able to help investors recoup lost funds on a no-win-no-fee basis.
Harrisons Business Recovery and Insolvency was appointed last month as administrator of Basset & Gold and B&G Finance, a related company that was marketing and arranged investments in the the bonds.
The FSCS has already said customers who bought their bonds through B&G Finance Ltd can submit a claim directly.
The regulatory body is still investigating the possibility of mis-selling by other related firms prior to March 2018.
Basset & Gold, which is not regulated by the Financial Conduct Authority (FCA), issued bonds which were sold to retail consumers. It also offered an Innovative Finance ISA that was managed by third-party ISA manager Gallium.
B&G Finance, which is regulated by the FCA, acted as an intermediary between the company and investors, arranging investments in the bonds sold by the company.
The directors of Basset & Gold and B&G Finance decided the company was insolvent after money raised was almost entirely invested in payday lender Uncle Buck, which has also entered into administration.