You might have heard the term financial mis-selling thrown around, and perhaps you’re wondering if you too were sold a financial product that wasn’t suitable for you. In this guide, we’ll take you through what exactly financial mis-selling is, and how you can claim compensation if you were mis-sold.
What exactly is financial mis-selling?
You may have been mis-sold a financial product if:
- You were given unsuitable financial advice.
- The seller (e.g. your bank) didn’t explain the risks to you. For example, just because you might have lost money doesn’t mean you were mis-sold. But if this potential loss wasn’t explained to you as a risk, you may have been mis-sold.
- You were not given sufficient information and ended up with an unsuitable product. Imagine you asked to buy a mobile phone with a camera and were sold one without, the same rule can apply to financial products.
However, it’s important to note that losing money does not mean you were mis-sold the product. One of the above instances must be present for you to be eligible for compensation.
Examples of financial mis-selling
PPI (payment protection insurance)
You may have been mis-sold PPI if you:
- Were pressured into buying it.
- Were not asked about existing insurance.
- Weren’t told about any terms or exclusions.
- Weren’t told about options from other sellers/companies.
- Were retired or unemployed when the product was sold to you.
- Weren’t made aware of rules around medical conditions or commission.
If any of the above statements sound familiar, you may be eligible for a PPI claim. However, all PPI claims must be made before the PPI claims deadline on 29th August 2019.
Similarly to PPI, you may have been mis-sold your investments if you weren’t told about the risks involved (for example, that you could potentially lose money); it wasn’t explained to you how your money would be invested; or the product didn’t match what you discussed with your investment advisor.
Unfortunately, this is a common occurrence. One couple from the UK were reimbursed £190,000 after their financial advisers recommended they invest in risky assets like death bonds.
Mortgages are also often mis-sold by banks and other mortgage sellers. Here are just some examples of mis-sold mortgage criteria:
- The commission the adviser would receive from the mortgage lender wasn’t explained to you.
- Your mortgage ends after your retirement date.
- You were advised to switch mortgage lenders but weren’t told about any potential fees from your existing lender.
Pensions are one of the most commonly mis-sold financial products by banks and financial institutions. You may have been mis-sold your pension if:
- You weren’t given enough information about your pension product
- You were advised on the wrong product. For example, you were recommended a personal pension but a company pension would have been a better option for you.
- The seller didn’t take into account any health or medical conditions you have that could affect you later in life.
- You were not given the opportunity to shop around for a better pension deal.
What to do if you’ve been mis-sold a financial product
If you think you have been mis-sold any of the above financial products, we recommend you hire an expert to handle your claim for you. If you’ve been mis-sold a pension, or a high-risk investment, get in touch with us today and we will send you a claims pack to get you started with your complaint.
We can also contact your advisor for you, so you don’t have to deal with the hassle of doing so. We pride ourselves on excellent customer service, and you can be certain your case is in safe hands!