Financial Misselling: What Is It And Can You Claim?

The most well-known example of financial misselling is payment protection insurance or PPI. This scandal broke in 2011 and since then, £38.3 billion has been paid in compensation to consumers who were missold PPI on lending products such as mortgages and credit cards. 

But what exactly is “misselling”, and how does it apply to financial products beyond PPI? Furthermore, how can you claim compensation?

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What Is Financial Misselling?

Any business that sells financial products must comply with the guidance set out by the Financial Conduct Authority (FCA) for fair and clear practice. If you have experienced any of the following, you may have been a victim of misselling:

  • The information you received about the product was incomplete or misleading
  • The risks of purchasing the product were not explained clearly to you
  • You received bad or inadequate advice
  • You felt pressured into buying the product by a pushy salesperson
  • The seller failed to inform you about additional fees that you’ve been charged.

If the above led you to buy an unsuitable product or to purchase a product with hidden commitments, you could be eligible to file a compensation claim.

You can still claim even if you have not lost any money. If the product is unsuitable or not what you reasonably expected it to be based on the information given to you at the point of sale, there are grounds for a claim. However, you cannot claim just because a financial investment failed to deliver the return you hoped for — unless the seller misled you about the prospects and risks of the product. 

What Type of Products Can I Claim For?

PPI is still one of the most common types of financial misselling that consumers claim for. Although the deadline for new claims passed in August 2019, there are some exceptional circumstances under which consumers can seek compensation.

Other examples of financial products that have been missold are:

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Disclaimer: The posts I write and share is purely for informational and entertainment purposes and I am not, nor claim to be a financial expert of any kind. Please make your own decisions on ...

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