When you undertake an investment, you hope that it is going to give you a good return. Most of us try to do our own due diligence and make sure what we are getting involved in is right for our needs. If you have been mis-sold an investment, however, you may be able to claim back the money you have put in and get compensation.
This doesn’t just mean if the investment has performed poorly – if the policy or scheme was sold and you were made aware of the potential risks, then you probably won’t have much cause for complaint. The financial regulation concerning investments such as ISAs or stocks and shares says that mis-selling has occurred when the scheme you have been given was misrepresented in some way or was unsuitable for your needs.
Explaining the Risks
You should ask yourself if your advisor explained all the risks to you properly. If you were unaware, for example, that you were likely to lose money because of investing in certain stocks and shares, then you may have a case for filing a claim. This might include the advisor telling you that you were guaranteed of making a profit, something which is rarely the case with any investment. There are always risks involved. Other companies have told customers that 100% of their money will be returned at least, which again is not always the case.
The Terms of the Investment
You may have been mis-sold an investment if the advisor didn’t explain how the product worked fully enough. That can include what charges the investment company make and how long the term is that you need to get a potentially good return. They may have misled you into believing you could access your money any time you want, when the opposite proved to be true. Another issue is that your money could well have been used for high risk investments without your consent.
Did Your Advisor Find Out About You?
Your investment company has a duty to find out if a particular investment is right for you. That means getting to know why you want to invest and what you want the outcome to be. You might want to build up some extra capital for your retirement, create a pot of money so your kids can go to a good school or something else in your future.
Your advisor should ask key questions about your current investments and what your views are if the chosen product proves to be unprofitable. They need to get to know you rather than merely selling you a set product.
Pressure selling can take many forms and can lead you to make an investment without considering all the potential risks. You might be told that you are guaranteed to make money or the advisor may be fixated on one product without offering any other options. They could have convinced you to move money from an existing investment to another with the promise of a better return that was unfounded. Some unscrupulous advisors may even push time-limited offers in order to get you to sign up.
It’s not just investment companies that have been guilty of mis-selling investments over the years. Banks and building societies have also been guilty of pressuring their staff into selling certain products that are not necessarily right for the individual. If you think you may have been mis-sold an investment, then it may be time to get your paperwork together and take a good hard look at what you have been sold.
PPI was mis-sold regularly by Banks and other lenders and you may be able to claim back the fees plus interest for FREE using our Mis-Sold PPI Form Download.
PPI was the 'optional' Payment Protection Insurance that was added to personal loans that you may have taken out in the past. The idea was that you would be able to claim later on this should you come into payment difficulties due to illness or losing your job. However, many people were not given a choice on this, or just would not be eligible.
There are over 20 million PPI policies in existence. You need to check if you had one.
1. Firstly, you can check if you ever had PPI by looking at your paperwork or even simply asking your bank.
2. Are you likely to be eligible? You might be if any of these happened:
a) You were told that the PPI addition was compulsory
b) You didn't realise you even had the PPI cover
c) You were sold a wrong fitting policy?
d) You were self-employed, unemployed or retired?
e) You already had an underlying medical condition
3. Download THIS FORM and send it in to the lender, filled out.