Claiming for mis sold Investments

Many thousands of people have been mis-sold investments by the banks

We have seen up to £67,000 pounds claimed back from banks, IFAs and building societies

Savers across the UK have been taken advantage of by banks and had their money badly managed by financial service providers

The problem has been widely publicised and banks have been fined millions

Risk averse consumers are having tens and even hundreds of thousands of pounds wrongly invested, in many cases against their knowledge

You could get your money back for any investment that jeopardised your money

 

Need to know

Investment mis-selling is a result of bad banking practices ranging from pressurised sales staff with unrealistic targets to corrupt management at some of the country’s leading banks

The list of banks to have been fined for investment mis-selling includes Bank of Scotland, Santander, Lloyds, Barclays and First Direct

Elderly customers are often targets as they are more likely to have significant savings. Others targeted include those recently raising capital from property sales, businesses or other assets, after which they are promptly contacted by their bank enquiring about investment opportunities

In one remarkable instance, bank salesmen travelled to a care home to convince a pensioner to invest his life savings on the stock market, he lost a significant amount of money but managed to claim it back

Consumers have also been misinformed over charges attributed to their investments

 

How do you know if you can make an investment claim?

  • Access to your investment money was limited after you were told you’d have full access
  • The investment was advised or sold to you by a bank, building society or an IFA
  • The investment wasn’t suited to your needs in the first place
  • You weren’t told of the level of risk involved
  • You were advised that 100% of your money would be returned (100% Capital Secure)
  • You didn’t know how your money would be invested
  • Your money was used for a high risk venture without consent
  • You haven't made a claim and have a mis-sold investment taken after 1998


 

Ways you can claim investment capital back

We always recommend that you try to claim yourself to avoid fees. Claims companies can take a significant percentage of your compensation and often aren’t necessary

Investment claims can be more difficult to manage yourself, but most importantly make sure you do something if you think you have been mis-sold

Get your facts straight before you take action. Get together all documents, correspondence, proof or anything else that can strengthen your investment claim

It’s important to give the company you are unhappy with the chance to sort out your problem, so your first step should be to complain to them directly. Once they have received your complaint they have 8 weeks to do something about it

If after this 8 week period you still feel that your problem isn’t resolved, you should get in touch with the Financial Ombudsman’s Service who will be able to help you officially lodge your complaint

You can complain directly to the Financial Ombudsman’s Service, however there is a time limit of six years from when you were mis-sold. This service is FREE, so give them a call on 0300 123 9123 or visit the website

Remember, you have to take action within six months of receiving a final response to your investment claim from the company. After six months the company will no longer be liable

Claims firms can charge you a large fee, some as much as 35%. We would advise you to make the claim yourself, as it is a relatively hassle free process. However if you cannot and you want to use a claims company, ensure that you use a good one

 

The inside track

  • It’s generally consider less of a risk to hedge your bets. Check to see whether your investment is in one place or more
  • Ensure that the risk profile of your investment fits with the advice you were given by your financial adviser
  • If the business you are claiming against has gone under, you may still be able to get your money back with help from the Financial Services Compensation Scheme
  • Consider the time limits we mentioned above if you are making the claim yourself. Don’t let them get away with it on a technicality
  • Check your investments to see if you have been affected, it’s more common that you think
  • Any risk to your capital could constitute cause for a claim
  • Unit trusts, investment bonds and capital protected bonds are applicable
 
 

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