Everything to know about mis-sold investments

After being mis-sold an opportunity for investment, many people are being put into the hardship of finance in this troubling world of financial mis-selling. From ethical forestry schemes to airport parking, any number of apparently promising ventures of business can fall inside the umbrella term ‘get-quick-rich schemes.’

You may find this term funny and humorous, but mis-sold investments are not a matter of laughing. In this blog, we are going to tell you almost everything about mis-sold investments that you need to know.

What are the mis-sold investments?

Whenever we mention a mis-sold investment, we mostly mention a piece of mis-selling' itself; the Investopedia state it likes "a practice of sale in which the service or product is misrepresented intentionally, or about its suitability; a customer is misled." Whether it's a mis-sold pension or mis-sold investment, the practices of sales are the same. Here we're talking about the mis-sold investments.

Mis-sold investments displayed to the investors (regulated or experienced investors) as the most profitable scheme, which looks so good to be true. In the UK, most of the investors are not regulated or experienced investors.

During the sales pitch, firm phrases of the signature maybe used, such as once-in-a-lifetime, and unique opportunity. Mostly those people used these phrases on their minds who are operating not legally with the financial gain (another thing you must keep in mind that mis-sold investments can also be provided by some genuine financial advisors who are searching to get a huge commission).

Mis-sold investments are high-risk.

It's a usual thing that many investments contain a risk element. However, if any investment comes under the brackets of mis-sold, then it means that there's a huge possibility that it will perform badly – with potentially shocking losses.

We mention some example of investments of high-risk below:

• When the earnings of potential depending on a strict set of rules (but unpredictable sometimes), then it will make the prediction hard that how an investment will perform.
• Land banking isn't always providing you guarantee that you'll be granted with planning permission; that's why it's a high-risk investment.
• VCTs (Venture Capital Trust) – a new company in which you’re interested in, possibly you cannot predict the success of that company. If you want to recover your money, then it may take many years.

These were just a few instances from which you can estimate what a high-risk investment is. If you want to get more information about the investment claims of mis-sold investment, then you must have to visit our page.

If you’ve been mis-sold an investment, then how to tell it

Here we are presenting some scenarios which often cause when someone makes a mis-sold investment:

• In a single choice or product, you've been advised to invest most of your savings or all your money.
• You feel that they're giving you poor advice and not advising you properly, which provides you a bad choice as a result.
• You purchase a genuine investment, but for you, the investment is very complicated to comprehend or understand fully, or it doesn't fit with your circumstances.
• Without made you completely aware of the risks, you've bought an investment. Perhaps they provide you false or misleading information or sold you a product which isn't suitable for your circumstances.

How to know mis-selling - The danger signs

Everyone wants to save their elderly relative or themselves from being mis-sold. Money Mail's James Salmon has exposed numerous cases of mis-selling, and for victims, he won back thousands of dollars. So, his advice is

Is the investment being too much risk?

You may continuously inform an advisor that you need only a limited exposure to the markets of yo-yoing stock, and you may claim again and again that you want an investment of low risk.

However, there are many salesmen who are hungry for the commission, and for that, most of the staff who coverup advisers as well ignore the requests of low-commission and safer paying accounts. Instead, you can see yourself at risk of low to medium funds, place your money in the stock market everywhere the world unbeknown to you.

Don't forget to double-check that exactly where your money is going. Ask a friend or family member to help you if you're not sure by yourself.

Are you tied in for so long?

If you require ready access to your money and you're an old investor, the last thing you need is to be protected into a fund or bond that fine you by reducing your own cash.

Search out for fixed-term and longer periods for your investment. It's a danger sign if your money is locked into the thing which makes you wait for many years to access it.

Is all your money in one place?

See the type of investment that you're going to make. You need to be doubtful if they put all your cash into just one asset like only shares.

If you think you have been mis-sold, then what to do.

• Be clear about everything that you did and write down everything and be clear when they advised you.
• Be clear about the thing for which you’re complaining. Question yourself:

• For me, was the product suitable fundamentally?'
• Did I know how it worked?'
• Were the risks involved highlighted suitably?'

When it comes to investing, then investing all your money in one place isn't good advice.

• First, complain to advisor or bank in writing and highlighting your grievance to the adviser from which you purchase the product or to your local branch. Clearly explain that you're not happy, and you know that you were mis-sold.
• If you don't get any satisfaction by doing so, then the next step is to take your problem to the headquarter of the company or to the customer service head. For complain departments contact the addresses that must be available on every firm's site, but if you doubt it, then call the company and question them the name of the employee who supervises the complaints.
• Again, highlight all the reasons why you feel that they were mis-sold you by writing a concise and clear letter. Be clear about your main grievances, who you dealt with, and with dates. And include that when you write the previous complaint and how they dealt with it. But don't lose your patience because the complaint processes often take eight weeks for processing complaints.
• If they reject your complaint, then you also have an option to take legal action; for example, take you to complain to Financial Ombudsman Service, they will not cost you extra, and on your behalf, they will investigate your complaint.

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