Facing up to the prospect of having been mis-sold a financial product is never easy. Establishing whether you have fallen victim to mis-selling can be difficult, given how the term is thrown around so freely.
If you suspect you may have been sold a financial product through false pretence or pressure tactics of any kind, it is important to take action at the earliest possible stage.
What Exactly is Financial Mis-Selling?
A financial product is considered to have been mis-sold when any of the following apply:
- You were provided with inaccurate or misleading financial advice
- The service provider withheld key information
- You were not made fully aware of the risks by your provider
- You were sold a product that was clearly unsuitable for you
- Pressure tactics were used to persuade you to buy the product
- Your provider sold you a product you clearly cannot afford
Purchasing a financial product and subsequently losing money does not necessarily indicate mis-selling. Instead, it is the nature/process of the selling process itself that indicates whether or not you may be entitled to compensation.
What Does Financial Mis-Selling Look Like in Practice?
Some financial products are mis-sold more often than others, but almost any financial product can be mis-sold. From loans to pensions to savings plans to insurance and mis sold CFDs or mis sold shares, anything you’re coerced into buying that isn’t suitable for your needs could constitute mis-selling.
Your case may be considered valid for a financial compensation claim if there is any evidence whatsoever that the financial products were sold to you without your best interests being taken into account. It could be that you were sold a product you’ve no use for, a product you cannot afford or a product you do not fully understand.
Cases involving mis-selling become increasingly difficult to resolve with the passing of time. It is therefore important to take action at the earliest possible stage, if you believe you have fallen victim to mis-selling.
What Should I Do if I Have Been Mis-Sold a Financial Product?
There’s a structured sequence of actions that should be taken, if you believe you have been mis-sold a financial product of any kind:
- Contact your Provider. Depending on the nature of your complaint, it may be possible to reach a mutually amicable resolution with your provider. Ensure you have a valid argument and can support your claim with sufficient evidence.
- Complain to the FOS. If you are dissatisfied with your provider’s response, your complaint can then be escalated by taking it to the Financial Ombudsman Service (FOS). The FOS has up to six years from the product’s date of sale to respond with a decision.
- Seek Independent Advice. If a swifter resolution is preferred, seeking independent advice at the earliest stage is recommended. Speak to a specialist who can help you establish whether or not you have a case.
If you have any questions or concerns regarding the validity of your case or would simply like to discuss financial mis-selling, in more detail call anytime for an obligation-free initial consultation.
Craig Upton