There are a number of factors that might lead to making a claim for financial mis-selling, but the universal driver is typically being sold a product or service which didn’t suit customer needs. This can include, but isn’t limited to, an individual’s financial situation and paying extra for a product or service which will forever remain dormant as the individual has no use or need for it. In addition to this, those who have been mis-sold often have done so because they have been misinformed by professionals or companies.
To break this down further, we’ve put together a list of the most popular reasons why an individual would feel compelled to put in a claim for financial mis-selling;
Pension Mis-selling: No options given
When starting your professional career, a pension plan will be set in place. Some people choose to actively review their pension when leaving a company and may even opt to set up a private plan. While this is completely acceptable, research and the right financial advisor are essential in finding the most appropriate plan for your situation.
If a financial advisor fails to highlight and explain what happens when starting a private pension or doesn’t give you the opportunity to move pension funds to your new workplace pension, there is a strong likelihood that you may have been mis-sold your current pension.
Mortgage Mis-selling: Broker fees
Signing up to or switching mortgage providers presents another opportunity to be mis-sold financially. The advisor you would have spoken to will receive commission on whatever the agreed loan amount is. While some include this clearly in billings or even ask for it upfront, others will include it within your repayment plan – potentially without you realising.
It may seem harmless, however, it actually can push up the overall cost, leaving you needing to repay more interest as a result of hidden extra fees.
Mortgage Mis-selling: Payment plans
You’d fully expect to receive the best possible options for your situation from your financial advisor. However, this isn’t always the case. Ideally, you should be able to repay your mortgage before you hit the average retirement age, but if your financial situation isn’t properly assessed it can create challenges for those repaying.
When an individuals’ income and budgets aren’t correctly assessed, they may be given a repayment plan that proves to be unrealistic and false – another example of mis-sold financials.
While these are common examples of mis-selling, there are plenty of others which can slip under the radar if you are researching into your financial decisions before making them. After speaking to a financial advisor, don’t be afraid to do some homework yourself or even openly challenge their initial recommendations.
However, if you are unfortunate for have been mis-sold a product or service and are looking for advice or representation for your claim, Lysander Law have a team of experts on hand who will provide you with a personalised service to your claim. Contact us for more information.