Mortgage Repossession Solicitors –UK Mis-Sold Mortgages and Bank Loans

Our UK mortgage repossession solicitors deal with all financial product mis-selling compensation claims under guidance provided by the Financial Services Authority (FSA) which controls the sale of financial products including mis-sold mortgages, pensions, bonds and personal protection insurance (PPI) :-

Puran Kaushal
Created by Puran Kaushal (User Generated Content*)User Generated Content is not posted by anyone affiliated with, or on behalf of, Playbuzz.com.
On Apr 24, 2018
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UK Mortgages & Re-Mortgages

Many mortgages have been mis-sold by the sellers of financial products based on the purchaser receiving inadequate information across a wide range of issues making that particular mortgage unsuitable. The Financial Services Authority which controls the sale of financial products including mortgages has indicate that mis-selling of mortgages is caused by a confusing or inadequate level of communication by the company that sold the financial product to the client and the responsibility for compensation lies with the company, salesperson or business that sold the mortgage. In general terms the company should have carried out a detailed fact find and sold a product that was suitable for the buyer bearing in mind their personal situation, their age and their attitude to loans. Once a mis-sold mortgage has been identified and liability has been proven, the seller of the mortgage must compensate the buyer of the mortgage for losses.

Any adviser who suggested that you stop an existing mortgage rather than extend that existing mortgage as a re-mortgage with the intention of selling a new one may be guilty of 'churning' which is against the Financial Authority rules and may give rise to a claim for mis-selling compensation if the arrangement lead to a loss by the client (repayment penalties, higher interest, valuation fees etc) whilst the salesman received enhanced commission for selling a new product.

Pensions & Contracting out of SERPS

During the 1980's millions of people were persuaded by private pensions firms that there was a better form of investment than the state earnings related pension scheme. Most of those that did change, even for a few years, have found that their pension on retirement is substantially reduced compared with the pension they would have received had their pension fund remained in the hands of the state. It may be possible to make pension compensation claims however whether the company that instigated the change mis-sold their financial product is a matter of fact, dependent on what they told the potential investor. In general terms the company should have carried out a detailed fact find and thereafter made full disclosure of all risks.

Bond Compensation

Bond mis-selling usually occurs when a salesperson persuades an investor to move funds from a low risk investment to a potentially higher earning but higher risk investment that doesn't in due course come up to expectations without fully investigating the investors personal circumstances and attitude to risk. Many investors were caught out by Precipice bonds which are also known as high income bonds or guaranteed income bonds which offered returns tied to the rise or fall of the stock market however the capital sum was not assured and was always at risk. Investors do receive a high return on their initial investment but the capital value of the shares may plummet, meaning that the overall return on investment can be very poor and is often negative overall.

Personal Protection Insurance (PPI)

Personal Protection Insurance mis-selling occurs when PPI is sold by a financial product seller however the product is of little use because claims are difficult to process successfully with less than 1 in 4 claims actually paying out. PPI is also marketed as Accident; Sickness and Unemployment cover (ASU) and if you take out a loan you cannot be forced to also take out Personal Protection Insurance. Many of these insurance policies are sold because borrowers are not fully informed by the salesman and the PPI information is lost in the small print. PPI may be attached to loans, mortgages, credit cards and a wide range of financial products. Many claims for losses that failed when made direct to an insurer will now succeed on a misspelling basis to the effect that the premiums can at least be recovered.

Investments

According to the Financial Services Authority almost all cases of investment mis-selling occur because of a serious lack of communication between the seller of the investment, which is often an Independent Financial Advisor (IFA) and the buyer client, however there are also many cases were the seller is dishonest and fails to fully appraise the buyer client in order to simply put the sale through, in order to claim substantial commission. The seller of an investment is required to carry out a full fact find, go through the small print, consider the effect of retirement and unemployment, outline charges and explain the investment to the client in full detail, whilst offering alternative investments that may be more suitable, with the overall requirement of establishing the clients attitude to risk and making recommendations accordingly. Failure to carry out these duties may have meant that the investment was mis-sold.

Mortgage Repossession Solicitors

Our mortgage repossession solicitors can offer a complete service for claiming compensation for mis-sold mortgages, pensions, bonds and personal protection insurance (PPI). Our team consists of lawyers, accountants, actuaries and insurance consultants who are registered by the Financial Services Authority will deal with your claim on a no win no fee basis. If you were not properly advised at the time you bought your financial product you may have grounds for making a claim for compensation. For free advice without obligation just call the helpline or email our offices and we will provide you with free advice with no obligation. If after talking to us, you decide to proceed no further you will not be charged for our advice and we will not contact you further.

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