Financial mis-selling complaints may arise from: the passing of bad credit advice/sales of financial products like SIPPs; where a client has a legitimate complaint regarding something that they paid for with a credit card or finance. It may also be a situation where the customer pays for a service, product or item on credit. In these cases it is not the lender who is passing the bad deals but the finance company or bank that is passing the bad deals. In the Financial Services Authority act of 2020 it is clarified that where credit is being extended to a client, and this credit is extended in circumstances where the client is not capable of making an application for credit or paying for credit. In addition to this, the client who is not capable of making an application for credit must also have given notice to the finance company or bank that they will not make any further credit applications unless they are able to do so. Where the client is informed that they cannot obtain any further credit or they are not entitled to any further credit from that finance company or bank, they have the right to reclaim their money in the form of a complaint.
This can only occur if the consumer is able to show that the company or bank acted unreasonably, as indicated in the guidelines of the Financial Services Authority. If you choose to go to court proceedings, you must ensure that you give the Financial Services Authority enough time to carry out investigations into the claims that you have lodged against the lender or the bank. The time limits for the investigations vary between six months to one year. When these time limits are met, you are able to make a legal claim against the Financial Services Authority for financial mis-selling.
You should first visit the office of the Financial Services Authority and ask them for information regarding the process of lodging a complaint for financial mis-selling. The FSA website contains all the relevant information on how to lodge a complaint. If you are still unable to find any information, you should contact the Financial Services Authority directly. They can also give you a full list of solicitors who deal with this type of claim. Financial mis-sold items are sold to consumers either through a broker or on an independent financial advice website.
Before you proceed with any complaint handling procedure, it is important to know how and when to complain. Every complaint is different and requires a different form of handling. However, if you are going to be a part of the Financial Services Authority, you will need to be very clear that you do not want to see any more complaints about financial mis-selling. There are strict time limits apply to the time that a client can lodge a complaint. If the financial mis-selling occurred over a period of three years or more, you will have to wait at least two years before you can make a complaint.
One of the main reasons why people think about making a Financial Services Authority complaint is because they lost money. There is no legal definition of what constitutes ‘lost money’ in the context of the Financial Services Authority, but you have probably heard the expression ‘lost income’ used before. If you are looking to get compensation for lost money, you will be much better off making a FSA complaint. Your first step is to work out exactly how much your investment was. This may be difficult if you had given the broker a 10% stake or more of your investment as commission.
Another reason why people think about making a Financial Services Authority complaint is because they were left distressed after investing in an unsuitable product. It can be difficult to see just how unsuitable a financial product is. You can usually see this information on the sales brochure. The Financial Services Authority will also be able to give you examples of unsuitable products. You should think carefully about how much you are prepared to accept as compensation for financial mis-selling. If you have lost money because you invested in an unsuitable product, you should think about taking action.
Another reason why people consider making a Financial Services Authority complaint is to highlight the fact that the Financial Services Authority has not done enough to protect consumers from financial mis-selling. There is currently only one legal definition of unsuitable financial advice and that is “a product which was sold for the express purpose that it is not suitable for investment.” It is not possible for the FSA to police every single product that is sold in the financial services industry. However, the FSA is able to crack down on those firms which fall into its strict guidelines. If you think that you have been affected by financial mis-selling you should make a complaint to the FSA.
The last point to consider when making a Financial Services Authority complaint is the fact that people who invest in PPI could lose out if the company they bought does not refund their money. Financial mis-selling does not only affect the people who invest in the product but also those investors who helped fund the company. You may contact the Financial Services Authority by writing to its registered address, asking for information on PPI complaints and if you need further information you should see their website. If you are still unsure whether or not you should make a complaint, then you should definitely do so as soon as possible.