It’s easy to think that financial mis-selling could never happen to us when we read about others who have fallen victim to fraudulent schemes.
Yet even if you feel like you are aware of the risks and which situations to avoid, mis-sold financial products are often well disguised.
The rich and famous are no exception and fall victim to these schemes. Recent media reports have carried stories of football stars who may have been caught in an illegal investment con. Up to 100 footballers are said to have been lured by fraudsters, with the money lost estimated to reach as much as £15 million.
The Guardian recently reported further financial mis-fortune for Premier League footballers who invested in schemes run by Ingenious Media. The former Premier League players now face a potential investigation by Her majesty’s Revenue and Customs after investing in schemes which HMRC view as attempts to avoid tax.
The majority acted on advice from financial advisers without realising the implications. The article goes on to suggest that “players who earned six-figure and million-pound-plus salaries during good careers in English football’s current boom time face losing everything.”
Despite footballers having the money to pay for support and access to advice on managing their finances, we can see that this does not prevent problems from arising if the advice was not suitable or the risks properly explained.
It’s hard to imagine that the rich and famous, privileged enough to afford extra support and advice, could be caught out. However, the people and companies behind financial mis-selling schemes are often excellent sales people, too convincing to dismiss.
Financial Mis-Selling
Financial mis-selling is a term used to describe a situation where you have ended up with a product or service that is not suitable to your needs. In some cases, it can cause you to lose a lot of money through investments, where the returns initially promised to you upon buying into the scheme never materialise.
Whether you received poor advice, were not made aware of potential risks or did not receive otherwise important information, you may be able to make a claim and receive compensation to make up for the money financial mis-selling has caused you to lose.
Even if you have not yet lost any money, you can still make a complaint to the Financial Ombudsman Service. So long as the product or service is unsuitable for you – or has proven to be a riskier investment than you first anticipated – you are entitled to file a complaint.
In order to make a sale to you and other potential investors, the salesperson will mislead you about the true characteristics or likely returns you will receive from the scheme they want you to invest in.
This includes embellishing their description of the scheme or excluding important information that would otherwise allow you to make your own personal judgement about whether or not you really need or want what is being sold to you.
Knowing this, it is easy to see why so many people are caught out by fraudulent investment and time-share schemes. If it has happened to you, you are not alone.
TLW Solicitors specialise in representing those seeking to reclaim financial losses. We offer practical legal advice and will pursue the maximum compensation amount available to you.
To find out more, or to make an enquiry, please feel free to call us on 0800 169 5925 or make use of our online contact form.
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