There has been incidents when financial companies or your own bank sell a product that was never suitable for you, but there is no need to worry as compensation is at hand once you file a complaint.
First – what is financial mis-selling?
Financial mis-selling is when you were not provided with the correct information, which ended up in you acquiring a product that was never going to be beneficial for you. The risks were never explained to you and the wrong advice was given to acquire this product.
In order to not fall under the mis-selling category, you have to make sure the person who is offering a product to you is giving you all the information and explained properly what the product can do and how will it be beneficial for you.
If the erson offering you this product did not give you any explanation whatsoever, you are able to claim compensation.
Some examples of financial mis-selling are:
- Nobody explained thoroughly the terms and conditions.
- How the commission on the PPI would work.
- PPI was sold to you when you were currently unemployed or retired.
- You were not given information about exclusions to the policy.
- You were pressured into acquiring PPI.
- You were not informed that you could acquire PPI from other companies.
- Nobody asked if you had any other insurance which could cover a loan.
- You were not informed of the rules about any pre-existing medical conditions.
- You were told to switch mortgage lenders but were not informed there would be penalties and different fees.
- You were not told the advisers would receive a commission from the lender.
- Your retirement date came earlier than your mortgage end date.
- You were not told your money would be invested.
- The product didn’t suit your needs or attitude to risk that you discussed with the advisers.
- You were never told about the risks involved.
Here is what to do if you find yourself subject to financial mis-selling:
1 . Call out your Adviser/Provider.
The firm is obligated to respond within 8 weeks, and if by any chance they do not contact you, you can then go straight into the Ombudsman service.
If you do get contacted, but are not content with the answer given to you by the firm, you have up to six months to take your complaint to the Ombudsman service. If the case is towards the Pensions Ombudsman, within three years from the complaint being raised.
You are within your right to receive a copy of the firm’s internal complaints process, they cannot deny you one or tell you it is not available as all firms have one and it will also provide you with information on who to contact.
2 . Collect all of the information necessary.
Finding concrete proof is not strictly necessary, but you do need enough information to explain the issue correctly.
- Gather all the relevant information
- Stick to the right facts, be concise and clear with all the information you are providing.
3 . Acquire the Ombudsman services to investigate the complaint.
In most cases the answer provided by the firm is not the one you were expecting. In this case, it is best to get in contact with the Ombudsman service to investigate the case, or in case of a pension, the pension ombudsman.
Although you usually do not contact the Ombudsman service unless it has been eight weeks and the firm has not given you a final answer. However, if the firm has been keeping you informed and trying to be helpful, you might want to consider giving them a bit of extra time.
- The Ombudsman service is considered independant and will start an investigation on your complaint completely charge free.
- Following the firm‘s official complaints procedure is highly recommended and must be done before you can contact the Ombudsman service.
Once the Ombudsman finish their work and give you a final decision, you can finally say that the process is done. However, if you are still unhappy with the decision made, you can get in touch with the Courts. It is really important to remember that Court cases are expensive and it is not a guaranteed win.