One of the most important things about making a purchase is making sure you get your money’s worth. If a company promises a product that fulfils several tasks, then it must do so accordingly. However, if a bank or a financial institution sold you a product that wasn’t compatible with you, you can get your money back by making a complaint.
Luckily, if you’re dissatisfied with the company’s response, you can turn to the Financial Ombudsman Service or Pensions Ombudsman to investigate this for you. Here’s what you need to know about financial mis-selling:
What Exactly Is it?
Financial mis-selling means that a company gave you unsuitable advice. They may not have given you the information you needed, resulting in you buying a product that wasn’t the right fit for you. They might have not fully disclosed the risks, either, which puts you in a precarious situation.
Mis-sold goods can be stressful to replace. For example, if you were looking for a computer with an optical drive so that you can put CDs in it, you’d go to a computer shop. You specified this to the shop assistant, who recommended a specific model. After taking it home and unwrapping it, you’ve found that it doesn’t come with an optical drive, meaning you can’t load it with CDs.
While there’s nothing wrong with the computer itself, it wasn’t what you were looking for, and it wasn’t what you needed.
Mis-sold products, especially financial ones, can pose some inconveniences on the buyer. Even though there was nothing wrong with the product, it wasn’t the best fit for your needs. The shop is responsible for informing you of all associated risks. Otherwise, you’re eligible to claim compensation.
What Are The Examples of Financial Mis-selling?
To protect yourself from financial mis-selling, you’ll have to know the most common ways it manifests. Here are some of them:
- You felt coerced into buying the payment protection insurance (PPI)
- The shop employees failed to inform you about policy exclusions
- The shop owners didn’t inform you that other companies also offer PPI
- The company sold you the PPI when you were unemployed or retired
- No one comprehensively explained the terms and conditions
- No one told you about the rules on pre-existing medical conditions
Financial mis-selling also occurs when buying a mortgage. Here are a few examples:
- Your mortgage ends after your retirement
- The adviser didn’t tell you about the commission they will receive from the lender
- You were advised to borrow money without proving your income
- The adviser told you to switch lenders without informing you about penalties and fees
- The lender gave you a fixed-rate mortgage, advised to remortgage later on, and didn’t tell you about penalties for leaving a fixed-rate mortgage early
What Should I Do If I’ve Been Mis-sold a Financial Product?
Once you’ve found out that someone mis-sold you a financial product, the best thing to do is to act quickly. Complain to your provider immediately, as they may be willing to offer you compensation. Customer satisfaction is paramount for most companies, and many of them do whatever it takes to guarantee a happy client.
Another option is to complain to the Financial Ombudsman Service. They have a time limit of six years from when someone mis-sold the product to you. They also have a time limit of three years since realising that someone misled you. They often prioritise whichever circumstance occurred later.
Conclusion
Financial mis-selling can be an incredibly frustrating experience. It’s easy to feel deceived or misled, especially if you earnestly communicated your needs with the lender or adviser. Thankfully, there are protocols in place to protect customers. The sooner you act, the more likely you’ll get your money back.
If you need more comprehensive help when dealing with mis-sold goods, let us know at Consumer Reclaim! We are industry specialists with experience in helping our customers claim compensation on mis-sold goods or services. Whether it’s a mis-sold holiday or a mis-sold solar panel, we can help you reclaim the costs you spent. Get in touch with us today to see how we can help you!