We’ve all heard about the PPI scandal that rocked the financial institutes and brought about some level of monetary justice to their customers, but PPI isn’t the only thing that may have affected to you. As such, we are going to explain what to do if you have been affected by the mis-selling of a product that wasn’t suitable for you.
What Comes Under The Banner Of Financial Mis-Selling Exactly?
In short, mis-selling is another way of saying that you were given unsuitable financial advice. Hat means they didn’t properly explain the risks attached to the product – or service – or you weren’t given the information required to make an informed decision.
Put it this way. Let’s say you went to a computer shop to purchase a laptop, and you said they your main priority was to have a USB port so that you can transfer files manually. The salesmen then recommended a model, but when you got home and unpacked it, you realized there was no USB port. There is nothing wrong with the computer, but it was mis-sold to you, and that is where the issue lies.
Key Things To Remember About Financial Mis-Selling
Whether or not you lost out financially is irrelevant, that’s because it doesn’t matter. It could be that the product wasn’t right for you, or it was a riskier investment than you wanted, you can make a claim because it was mis-sold, and it is the bank’s responsibility. However, it is also important to understand that you can’t complain about an investment just because it performed badly. Investments are risky, and that is part of it. However, you can complain if you weren’t properly informed about the risks.
Some Examples Of Financial Mis-Selling
The biggest – and most reported – case involves the mis-selling of payment protection insurance, in which there are dozens of ways you may have been mis-sold this product. It could be that you were pressured into purchasing it, or you weren’t informed about the exclusions, or perhaps you weren’t told you could purchase this product from another company. There is a multitude of reasons, which is why we recommend you speak to a PPI company to ensure you reasons for staking a compensation claim are grounded.
Another area of huge contention is the mis-selling of your mortgage. The most common ways in which these were mis-sold is if your mortgage end date is after your proposed retirement date, you weren’t properly informed about the commission that the person advising you would receive, you were illegally advised. This latter point could have been done in numerous ways. It could have been that you were advised to borrow money without proving your income or overstate your income to borrow more. However, it could also have been that you were told to switch lenders without being told about the penalties or fees that would incur.
The other big mis-selling scandal involves the mis-selling of an investment. The reasons why you could have a claim here is because you were either ill-informed about the risks attached to your investment, weren’t properly informed about how your money would be invested, or the product you were sold didn’t align with the wants or needs that you discussed with the advisor in question.