Financial Advisor fined £135,000 for mis-selling!

bigfreddiel

A FA has been ordered to pay a customer £135,000 compensation for mis-selling an inappropriate equity release mortgage by the FOS.

Even tho' it was shown to be mis-selling the FA still tried to wriggle out of the verdict by only paying £50,000 compensation! The FOS stepped in and ensured the FA paid the full amount. I find that just typical behaviour of FAs!

How did the customer win, simple really, they were comfortably off, had pension income that was more than adequate, plus savings and so on, but basically they did not understand the terms of what they were sold!

So it seems if you are not happy with the outcome of your financial advice just complain stating you didn't understand what you were sold!

Cheers fj

colsten

zzzzzzz your anti-FA campaign is getting boring, particularly if you post no links that support your rant. Of course people will have a comeback when there is proof they have been mis-sold.

NB. I am not an FA/IFA, nor am I associated with one.

kidmugsy

bigfreddiel wrote: »

basically they did not understand the terms of what they were sold!

Pity that fools like that aren't charged 25% of their award to defray the costs of having these tribunals/investigations.

dunstonh

The FA was not fined. It is compensation.

I find that just typical behaviour of FAs!

The insurer would be the one paying out and would be the one setting the payment agenda. However, that doesnt really fit with your agenda.

How did the customer win, simple really, they were comfortably off, had pension income that was more than adequate, plus savings and so on, but basically they did not understand the terms of what they were sold!

Yet you see adverts for equity release and a solicitor is required to be involved who covers the risks and warnings.

So it seems if you are not happy with the outcome of your financial advice just complain stating you didn't understand what you were sold!

indeed. Just this week MP Mark Garnier said that consumer protection had swung too much one way and needed to reset to a sensible position. With his position and the current review, it is hoped that some sensibility will be returned.

jimjames

dunstonh wrote: »

indeed. Just this week MP Mark Garnier said that consumer protection had swung too much one way and needed to reset to a sensible position. With his position and the current review, it is hoped that some sensibility will be returned.

I think PPI is a perfect example. The bandwagon that has built up over it is crazy and the numbers are now incredible. It seems very unfair that this continues with no end date so far, anyone who hasn't yet claimed must have been hiding under a rock.

masonic

bigfreddiel wrote: »

So it seems if you are not happy with the outcome of your financial advice just complain stating you didn't understand what you were sold!

I'm sure there are people who do just that, even though in reality they understood perfectly, but just didn't like the performance of what they were sold. Just like there are people who will fake an illness in order to claim benefits. Most would find such behaviour morally reprehensible and consider it fraudulent. So, perhaps the bad guy in this story is the wealthy customer and not the FA?

Thrugelmir

jimjames wrote: »

I think PPI is a perfect example. The bandwagon that has built up over it is crazy and the numbers are now incredible. It seems very unfair that this continues with no end date so far, anyone who hasn't yet claimed must have been hiding under a rock.

Having an inside view. PPI was a rip-off. Wasn't just the banks that benefited either. What also has to be considered is that the likes of HBOS used PPI to cross fund/sell other services. In reality credit such as mortgages/loans was advanced at much lower interest rates than would have been the case on a commercial basis.

Across the whole piste. Using a factor of 3. What occurred in 10 years of financial abuse. May well take 30 years to finally unravel.

chris_m

jimjames wrote: »

I think PPI is a perfect example. The bandwagon that has built up over it is crazy and the numbers are now incredible. It seems very unfair that this continues with no end date so far, anyone who hasn't yet claimed must have been hiding under a rock.

Or never got suckered in in the first place.

The ONLY PPI I've ever had was when I activated a replacement credit card and they automatically activated PPI as well, without asking me. I spotted a spurious 10p on my next statement and instantly demanded to know what it was. They told me, asked if I wanted it cancelling and, when I said "yes", cancelled the PPI on the spot and refunded my 10p.

I have been tempted to use it to wind up one of the PPI cold callers - "oh, yes I had PPI, Lots of it for quite some time" and string them along for as long as possible, hopefully sensing them salivating as their mind goes "kerching, kerching" before revealing that a) it was only 10p and b) I got it back :rotfl:
However, I find it far more peaceful to just use a call blocker.

I guess the main reason that I've managed to avoid any PPI that I was asked if I'd like was that I work for a large company with little-to-no chance of compulsory redundancy, very good voluntary redundancy terms and very good sick benefits so I would always be able to pay anything off myself without needing to buy insurance. Have to watch it from next month though, when I've retired

Pincher

The only way to prove that they understand is to make them do a test. I know, probably 10% will actually pass. The 90% will just say, tell me the answer: what an ethical dilemma.

jimjames

chris_m wrote: »

Or never got suckered in in the first place.

Sadly I never took out PPI for any products despite the best efforts of the sales people. I could see then that it was a waste of time for me, I pay of credit card in full so paying insurance every month to get minimum payment seemed waste of money. Wish I had taken it now when I see what others are getting paid but if I could see it was pointless then why didn't others? (Sorry that's now drifting away from IFA mis-selling)

dunstonh

The FCA today announced they are doing a review into equity release to see if the level of regulation is too high and that is putting people off from doing it.