Mis-sold Investment FAQs
We hope this section will help to answer any questions you may have. If you'd like to discuss your eligibility for a claim or if you have any other queries, please call one of our expert claims advisers, who would be happy to help.
Q1. How do you define mis-selling?
A. Any advice given to a customer which is unsuitable – for example we come across many cases where customers were advised to invest over a number of years (usually a minimum of 5 years) when they were approaching retirement and their financial and personal circumstances were likely to change drastically. This meant they often had to ‘cash in' their investment well before the recommended 5 years leading to losses. We also speak to many people who were advised to invest when they were in seriously poor health, this is often a clear case of mis-selling.
Q2. How do I know if I am eligible to make a claim?
A. Our investment experts will discuss your case with you over the telephone to try and establish your circumstances at the time you made the investment. If you lost money and the risks were not properly explained there is a good chance you may be entitled to make a claim. In most circumstances we can tell you over the phone, after the initial discussion, if we think you should submit a claim.
Q3. What sort of investments can I claim against?
You can claim against any sort of stock market linked product in which the value of your capital can go up or down. Examples of this type of investment include Stocks and Shares ISAs, Unit Trusts and Investment Bonds. We can also help you claim for mis-sold Pension Transfers and SIPPs. Learn more about mis-sold investment products.
Q4. Can I take investment companies to court?
A. Yes, legal action is an option for you. However, there may well be costs incurred and you could be out of pocket, particularly if the decision is not in your favour. The legal process can also take many months, if not years, to be completed.
We take your complaint directly to those responsible for giving you the poor advice and set out clearly why we think that advice was unsuitable. We are able to do this because all our claims advisers are experienced in financial services and have the necessary expertise to secure you the compensation you are due.
We take your complaint directly to those responsible for giving you the poor advice and set out clearly why we think that advice was unsuitable. We are able to do this because all our claims advisers are experienced in financial services and have the necessary expertise to secure you the compensation you are due.
Q5. How much will I receive in compensation?
A. If we are successful we ask the business responsible for the advice to repay any capital lost together with what is known as ‘loss of investment opportunity'. This is calculated on the amount you could have earned in interest or in a more suitable investment. This amount should have been available to you when the investment ended so we also request the bank pays interest from that time to the present day.
The average payout we get for our customers is £8000
The average payout we get for our customers is £8000
Average calculated between Jan 2017 to date and before deduction of our fees
Q6. What are your fees?
A. We do not charge any upfront fees. If we are successful in getting you a refund, we’ll send you an invoice for our fee which is calculated on the total amount you get back.
If you cancel after 14 days and we have already submitted your claim, and an offer of compensation is subsequently made, we’ll send you an invoice for our fee which is calculated on the total amount you get back.
| Redress band | Redress Amount | Max % Fee (Inc VAT) | Max Total Fee (Inc VAT) |
|---|---|---|---|
|
Lower
Upper
| |||
| 1 |
£1
£1,499
|
36% | £504 |
| 2 |
£1,500
£9,999
|
33.6% | £3,000 |
| 3 |
£10,000
£24,999
|
30% | £6,000 |
| 4 |
£25,000
£49,999
|
25% | £9,000 |
| 5 |
£50,000
NA
|
18% | £12,000 |
The above fee illustration is not to be taken as an estimate of the amount likely to be recovered for you.
Q7. Do I have to pay tax on my compensation money?
A. Part of the money we reclaim for our customers constitutes "lost interest" which would have been earned if the advice was not given and the client had left their money in a bank account. So yes, tax is payable on this portion, but the bank will automatically deduct this at the basic rate (currently 20%) from the amount payable to you.
If you are a non-taxpayer, it is possible that you will be able to reclaim some or all of this tax back by contacting HMRC and completing Form R40. If you are a higher rate taxpayer it is possible that you may have a further tax liability – you would be urged to seek independent tax advice in this respect.
If you are a non-taxpayer, it is possible that you will be able to reclaim some or all of this tax back by contacting HMRC and completing Form R40. If you are a higher rate taxpayer it is possible that you may have a further tax liability – you would be urged to seek independent tax advice in this respect.
Q8. How long does a claim take?
A. Under normal circumstances, once we send the complaint to the bank they have up to 8 weeks to issue their final response. In exceptional circumstances this can take a little longer but in most cases we usually get a final answer well within the 8 weeks – sometimes in as little as a week!
Q9. I don't have any paperwork, can you still help?
A. Yes – The paperwork relating to your investment is important but not always essential. If you don't have it we can usually get it from the bank directly, so you can still make a claim.
Q10. Is there a time limit on mis-sold investment claims?
A. No – there has been no time limit set on investment complaints to date. But PPI has been set a deadline of 29th August 2019 so we would urge people to act now before any deadlines are put into place for mis sold investments.
Q11. How far back can you go?
A. This really depends on a number of factors – like if you still have the paperwork and which bank your investment was made with. As a general rule of thumb we can go back about 20 years but we have helped many people going back even further.
Q12. What are some examples of a mis-sold investment product?
A. We help with Stocks and Shares ISA's, Personal Equity Plans (PEP's), Unit Trust's, Open Ended Investment Companies (OEIC's), Investment Bonds, Managed Portfolio's and many more.
Q13. Is there a limit on how much compensation you can claim?
A. If your claim is settled straight away by the bank who gave the initial advice there is no limit. If the bank reject your claim and it is then settled with the intervention of the Financial Ombudsman Service (FOS), a limit of £150,000 applies. If the financial adviser or business who gave you the advice has ceased trading, we would have to take your case to the Financial Services Compensation Scheme (FSCS). They set a limit of £50,000.
Our average compensation claim is around £8000* with the highest we have reclaimed for a customer being over £200,000!
Our average compensation claim is around £8000* with the highest we have reclaimed for a customer being over £200,000!
*Average calculated between Jan and July 2018 and before deduction of our fees.
Q14. Are any mis-sold investment products time-barred?
A. The banks can reject your claim if the advice was given more than 6 years ago or the investment was surrendered more than 3 years ago. This can be a complicated area which is open to some interpretation and subjectivity.
Our expertise means we can put together a case highlighting why your case should not be time barred. We secure compensation for people everyday on claims which could potentially have been time barred.
Our expertise means we can put together a case highlighting why your case should not be time barred. We secure compensation for people everyday on claims which could potentially have been time barred.
Q15. What happens after you get my signed claim forms?
A. Your personal claims adviser will put together a detailed report to send to your bank or financial adviser. This will set out our case for compensation. We will then provide you with regular updates on the progress of your claim and inform you as soon as we receive an offer from the bank.
Q16. Can I make a claim myself with the bank?
A. Yes, you are entitled to complain directly to your bank and if unsuccessful you can refer your claim to the Financial Ombudsman for free. However, many people choose to use Goodwin Barrett because of our experience and expertise. We take away much of the hassle and stress and handle everything on your behalf.
Q17. Will it affect the relationship I have with my bank?
A. No – not at all. It is your right as a customer to complain about something you are not happy with and the bank has an obligation to treat you fairly and investigate your complaint without prejudice.
In actual fact it is very unlikely that your local branch will even be aware that you have complained as all complaints are dealt with by a central department.
In actual fact it is very unlikely that your local branch will even be aware that you have complained as all complaints are dealt with by a central department.
Q18. What if the bank reject my claim?
A. If the bank rejects your claim you have the right to take your case to the Financial Ombudsman Service for an independent review.
Q19. Will you need my bank details?
A. We will never ask for your bank details. This is not part of our claims process.
Q20. How will any compensation get paid out?
A. The bank will usually pay all the compensation payment directly into your chosen bank account or they may pay you by cheque. Once you have received the money, you will need to pay our invoice within 7 days.
Q21. Why should I use Goodwin Barrett?
A. We have a proven track record in settling financial mis-selling claims and have already reclaimed millions for our customers. Our investment claims advisers have the necessary expertise to put together a strong case for mis-selling, giving you the chance of reclaiming potentially thousands of pounds.
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William Thornley
from Bolton
received
£21,400
compensation from Halifax
Alan Burke
from Bolton
received
£34,800
compensation from Santander
Why choose us?
- Hassle-free process.
- No lengthy paperwork to complete.
- Your own dedicated claims expert.
- Claims settled within 8 weeks on average.
Speak to our friendly experts
If you feel you've been let down by your bank or financial adviser please call us.
Call today 0808 163 1659
Customer Stories
We've helped thousands of people win compensation as a result of unsuitable financial advice.
I’m absolutely delighted with the service we got from Goodwin Barrett, I couldn’t believe how easy it was and i’ve nothing but praise for them
This was an excellent result which my wife and I never expected. My sincere thanks to you for such an excellent achievement, I cannot thank you enough
After sending a report to Santander, they agreed with our findings and awarded Mr Snowden an amount of £7,000 made up from a refund of the losses together with interest and compensation.
This was a fantastic result I never expected. My sincere thanks for such a prompt and efficient service.
I am so grateful to your company but especially to Steve Wise for getting me the money back
We reported our findings to Halifax and within a matter of weeks had secured our client the sum of £26,700 in compensation.
After we sent a detailed complaint to Halifax, Fred was delighted to receive £6,916 from the bank in a matter of weeks.
Having investigated the complaint Lloyds TSB agreed that the advice was unsuitable and agreed to pay the clients £10,000.
Figures shown are before the deduction of our fee.