Introduction
When it comes to making investments, many consumers don’t realise they may have been mis-sold or even scammed by a product that wasn’t suitable. From hidden fees to false promises, it’s essential to know how to spot bad deals and what to do if you’ve been affected.If you’ve fallen victim to a mis-sold investment, there is hope. You could be entitled to compensation and reclaim your losses by making a complaint or going through official channels.
Check if your investment was a scam at: ScamSmart – Avoid investment and pension scams | FCA
Do I Have a Claim?
You might have a claim if:- The risks weren’t properly explained to you.
- You were promised guaranteed returns (which never materialised).
- You were advised to invest in something unsuitable for your financial situation or risk appetite.
- You weren’t informed of fees or charges associated with the investment.
- You felt pressured into investing without time to consider or research.
Common Warning Signs
Here are some red flags to watch out for:- Cold calls or unsolicited messages about “exclusive” investment opportunities.
- Promises of high returns with little or no risk.
- Lack of clear documentation or difficulty accessing your funds.
- Unregulated advisers or firms pushing you to act fast.
- No clear explanation of where your money is going.
Types of Mis-Sold Investments
Mis-selling can occur in many different ways. Common examples include:- Pension Transfers: Moving your pension into risky or unregulated schemes.
- Mini Bonds: Investments that failed due to lack of regulation and risk disclosure.
- Property Schemes: Off-plan overseas developments or storage pod investments.
- Forex/Crypto Scams: Promoted online with fake celebrity endorsements or unrealistic returns.
How Do I Claim?
If you think you’ve been mis-sold an investment, here’s what to do:- Gather all your paperwork: emails, contracts, advice received, and bank statements.
- Contact the company that sold you the investment and make a formal complaint.
- If you’re unhappy with their response, escalate the case to the Financial Ombudsman Service.
- Alternatively, use a solicitor or claims management company experienced in mis-selling cases.
