If you have opened a newspaper or turned on the radio and TV in the last four years then you probably can’t have missed the coverage of the PPI scandal: From reports in the news to claims companies helping you claim your money back.
PPI has bought the focus on to the mis-selling of financial products like never before and since the financial recession consumer trust in the financial industry is at an all-time low.
This new low in consumer trust is causing people to review their past and present financial decisions in a different light. The shift in consumer thought process has caused financial planning to be picked apart and new regulations bought in to ensure that consumers are treated fairly – for example, not being goaded into a particular financial products or services due to high commissions available to pension advisers and financial advisors.
Some leading experts are concerned that PPI mis-selling is just the tip of the iceberg, with thoughts that over half of all financial products sold to clients by financial institutions have not been the correct for the client.
Why do experts believe the figures to be so high?
High Commissions – Before RDR was introduced high commissions where available for selling certain products to clients. This caused advisors and institutions using high pressure tactics to lead clients in to the product that would serve them the most commission this is not always the most suitable product for the client.
Trawling Data – financial institutions are privileged to the ins and outs of their clients finances and although this is not meant to be used for their own gains. Companies have been known to use this customer data to find potential sales opportunities.
Poor Training – Training can be an issue with messages in large organizations being miss interpreted by staff and management. This can cause the wrong message being passed to clients and in the worst case scenario the incorrect advice being passed to the client.
Risk Aversion – Clients not being explained the full financial risk or the advice being heavily weighted on the return on investment. Some products including pensions where set up with guarantees that where overstretched by advisors and investment bringing clients into a false sense of security.
Do you feel that you have been a victim of any of the above? Are you approaching retirement and have concerns over the advice you have received in regards to your pension?
Expert Pension Claims are helping consumers reclaim their mis-sold pensions, and we could help you call us today for an initial consultation and see how we can help you if you have been a victim pension miss selling.