When we buy a financial product or type of investment, I think it’s safe to say that we assume that it’ll be worth that money. Unfortunately, there are some that just aren’t up to snuff and will actually end up losing you cash in the long run. When that does happen, it’s easy to feel defeated or to just give up. However, there are steps that you can take after the fact.
You see, if you feel like you’ve been ripped off, scammed, or otherwise mislead by a finance product, you may be able to file a claim against the perpetrator. Obviously, it’s not a guarantee, but today I’ll be explaining how that might be possible. While sometimes this sort of thing is unavoidable, at least we do have options in terms of how we move forward.
Why Mis-Sold Financial Products are Such a Big Deal
As far as why this is a big enough deal to file a potential claim, there are a few things to keep in mind here. For one thing, the safety and security of consumers is paramount here in the United Kingdom. So, when pensions are at risk due to disingenuous advertising gimmicks, it’s a real problem. You can see some further information on this by looking here, if you are curious about the specifics of the law.
Beyond that, though, this is especially problematic when it comes to finances. You see, a lot of people become reliant upon their pension plans once they retire. Yet, there are still predatory websites and emails that are here to try to convince you to trade that for a “surefire” investment. There are many examples of this.
A common one (however unfortunate that is), is being pressured into trading out your regular pension for something known as a SIPP, or self-invested personal pension. Often, that pressure comes from a trusted source such as a financial advisor that you’ve been working with for a long time. It’s quite hard to say no in such circumstances.
The issue here isn’t necessarily the SIPP itself, but the advice that is given in relation to it. See, if you’ve been advised poorly in handling one, that’s where you might have a claim to some compensation. If you’re ever unsure, there, you can get a free consultation with an organization like Lincoln Green or the others that are in this business. Typically, though, it’s not a bad idea to look for an attorney who specializes in the sorts of claims that you are after.
When to Get a Consultation
What was covered above is just one example of the potential misrepresented products that you could have experienced. There are more, of course, which we will be delving into now. The first of which are investments that are mis-sold, which are much more common than you might expect.
What qualifies as a mis-sold investment, though? At first glance, it does appear to be a rather open-ended or subjective sort of category. This isn’t entirely wrong, of course, but there are some guidelines that we can use to help determine what is included. For one thing, any type of investment that is not explained correctly or accurately and is still sold to an investor may count.
This can take a few forms. If the advisor who is selling the investment is purposefully explaining it incorrectly or inaccurately in order to take advantage of the investor, then there is most certainly at least a potential for a case against them. However, ignorance can also be a factor, and does not necessarily mean “innocence” for the advisor who did not fully understand the financial situation of their advisee.
As this page explains, https://www.citizensadvice.org.uk/about-us/our-work/citizens-advice-consumer-work/the-consumer-rights-act-2015/, a mis-sold investment tends to also be one that has lost you money because you did not fully understand what you were getting into when you sank the initial cost. So, any financial products, including stocks and bonds, that you feel are unsuitable and have been demonstrated to be as such may be a result of misrepresentation.
Some Scams May Count as Well
To some, there may not be much of a difference between a mis-sold product and a scam. However, there are some distinctions between the two, although there are plenty of scams that are still potentially open to claims. One that comes up fairly often is known as a “bank transfer” scam. How does it work?
If you send money to a company that claims to “make millionaires” through their programs, particularly via a transfer directly from your bank, then it may have been a bank transfer scam. You see, often there is no real financial trading platform at all, and these fraudulent sites may not even continue to be in service after a week or two because they have been shut down.
However, that doesn’t undo the real damage that they can cause to innocent investors just looking to keep up with the times. Remember – there are things that we can do as consumers to protect ourselves before we fall for the tricks. While you can file a claim after the fact, prevention does tend to be a better strategy in the long run.
Always examine claims that are made on these sorts of financial websites. Are they too good to be true? If so, it may be time to exercise caution. While this isn’t always true, it tends to be a good rule of thumb to follow. After all, when we can do a bit of research online for any sort of company that we see, why not go through with that before we send them any of our hard earned money?
Additionally, any promises of giving you a “better pension” should certainly be scrutinized. Always be on guard, as these mis-sold products are hidden quite well. Finally, remember that you can file a claim if you feel that you have experienced one of the situations that I described above – consult with an attorney if so.