This week in retrospect has been highlighted by news of mis sold products from complex interest rate hedging financial products to mis sold energy deals. And, to make matters even worse, the claims companies that advertise to help consumers reclaim mis sold PPI are now being investigated for alleged abuses and of mis selling their services. It seems as though companies in the UK have gone ‘mis sold’ happy and are looking to close a deal no matter the cost to the customer.
However, the worst news is that British banks are on the verge of being investigated for having been privy to the systematic misselling of interest rate derivatives to SMEs. According to the FSA, what they have uncovered thus far is indicative of unethical sales practices along with questions regarding the suitability of products having been sold. Sadly, the banks in question are not little local community centres but large financial institutions such as Lloyds Banking Group, Barclays, Royal Bank of Scotland and HSBC.
After an investigation conducted by The Daily Telegraph and The Sunday Telegraph, The FSA picked up the hunt and are actually on the brink of a full-fledged investigation with the potential for enforced action. Reports are continuing to pour in from customers as well as paperwork from the banks in question and this phase of the preliminary work is forecast to be complete by next month.
It appears as though Britons are being mis sold products and services across the board and the problem has become so widespread that the FSA is having a time of it trying to sort through mounting stacks of complaints. Companies are misselling products and other companies are misselling services to reclaim money and it has become one vicious cycle.
There is however a bit of good advice which can go a very long way. Don’t sign anything whatsoever until you have had time to thoroughly read and understand the small print.