Financial Mis-Selling is a phrase which has become extremely popular in Ireland over the last number of years. Banks and lenders have made the national on a number of occasions after reports of consumers who were mis-sold, misadvised or misinformed became widespread.
These reports have been in connection to a number of financial and insurance products such as Mortgages, credit cards, hire purchase agreements, loans, investments, pensions, life assurance and Payment Protection Insurance. Banks and lenders during the boom of the Celtic Tiger became like conveyer belt machines churning in applications and spitting out credit. The problem in such an overworked environment like this is that procedures and regulations sometimes fall by the wayside as profits and revenue take main focus. When this happens the inevitable will occur and that is mis-selling. Banks and lenders are commercial organisations and they inevitably focus on profit and loss. They give staff commission incentives to sell insurance policies and financial products which can sometimes mean that products are sold to consumers which they do not need. When a consumer purchases an insurance or financial product from respected organisations such as banks and lenders they do not for one second consider that they might be sold something which they do not require, something which does not match their requirements and certainly not something which is of no use to them whatsoever. The worrying thing however is that this is precisely what was happening across Ireland and at an alarming rate.
Consumers have been mis-sold on a wide variety of financial and insurance products. Products were sold with only the lenders profits in mind and not the consumers needs and requirements. As a result we now have thousands of consumers with mis-sold products. In a circumstance such as this a consumer in Ireland will regularly report the mis-selling to the Financial Ombudsman. This of course has many benefits but consumers need to be aware of possible drawbacks from taking this step of action. The ombudsman is an impartial adjudicator who will review a case of mis-selling with a fair view and with both parties interests at heart. This in itself can be considered a drawback as consumers need somebody who is dedicated to their case and with only their interests at heart. A claims management company instructed by a consumer will have the qualities that they need. They will become a client of that office which will give them the support and dedication of that organisation.
Another possible drawback of going directly to the Financial Ombudsman is that your case will simply join a queue of complaints and you will simply be allocated a reference number. It might take several months for a handler to be allocated your case and that is a number of months wasted which could have been spent tackling your lender on the issues of mis-selling. When you deal with a claims management company they will usually appoint a dedicated claims handler who will normally start on your case within 24-48 hours. Once your claim has been started you then have an organisation dedicated to your case, with only your interests at heart and not those of your lender. You will receive the full support of that organisation and that can only improve your chances of success.
Some may consider a claims management company an additional expense as you will usually have to pay a small upfront administration fee and a back end fee which is usually a percentage of the amount recovered from your lender.
Although a claims management company have fees and charges a consumer needs to evaluate what is best for them. Do they want a company who will tackle their lenders directly, start their claim within 48 hours, have only their interests at heart, provide dedicated claims support, seek the largest amount of compensation directly or do they simply want to become another number in a state run organisation dedicated to helping both consumers and lenders.
A consumer needs to think carefully before making this very important decision as it will have a large bearing on how their case matures and inevitably how much compensation they will receive. The Financial Ombudsman is a well respected and professional organisation but a dedicated claims management company can offer you the same service and more. They will work with you and for you. They are not concerned wit the interests of your lender, they are only concerned with you.
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