Have you ever been a victim of mis-sold financial products? It can be quite stressful for any person that has bought a financial product that doesn’t fit their needs at all. If you don’t know what the term means exactly, we’ll offer an explanation below.
Mis-selling usually occurs when a customer is sold, through unsuitable advice, a product that doesn’t work for them at all. Why does this happen? Well, when buyers lack any understanding of the specifics and details of a financial product, they are more likely to make a costly mistake they’ll end up regretting.
But, you’re not to blame in this scenario! You don’t have all the information in the world about all the products you’re looking to purchase, so it’s logical to turn to a seller and ask for a detailed explanation of the same product.
Salespeople in the financial services industry often promise the moon to potential customers in an effort to meet their astronomically high yearly quotas. Consumers also tend to be oblivious to some very important costs, which the industry constantly relies on. You can check out this link https://www.outlookindia.com/business/5-easy-ways-to-avoid-becoming-a-victim-of-mis-selling-news-121792.
It’s logical to want to trust to what the salesperson is saying to you, but in most cases, what they explain to you about a certain product is a complete lie. That’s why, the term miss-selling is closely connected to fraud.
But, it doesn’t stop with just a simple product. There are miss-sold scenarios when single people are sold endowment policies, or when older people are convinced to buy pension plans.
Additionally, first-time equities investors are usually encouraged to acquire derivatives without being advised of the risks, and mutual fund investors are urged to churn their portfolios every three months.
As you can see, this has become a big problem for many individuals. If you don’t want it happening to you, there are certain tips you can follow to avoid it for good. Here’s what you need to know:
Stay away from impulsive buying
You’ve just gotten your paycheck and you want to treat yourself with something nice. Look, we totally get it. But impulsive buying is usually the number one leading cause in getting involved in miss-sold financial scenario.
Even if a product is available on a limited time, this shouldn’t put pressure on you to buy it as soon as possible. instead of walking into a store, go home and do research first. If it’s definitely something you want and need for yourself or your home, then consider buying it.
Also, it’s important to know how much certain products cost. You need to have a particular budget in mind in order not to overspend on useless things. Make sure to compare the pros and cons of getting it as well. Read more here.
Push down your greed
We all want money, right? Money doesn’t grow on trees, so we’re desperately trying to find easy ways to access as much of it as possible. This is where things can get tricky. If your greed takes over, you can make a lot of irresponsible and poor financial decision. What does this mean, exactly?
This means that you can put your money into financial products you have no clear understanding of. You won’t even know where you’re investing your funds in the first place.
Options that promise fast and easy returns of money should be inspected in advance. So, make sure to do your research before making any type of investment and don’t rush your decision.
Don’t buy into the hype
When it comes to mis selling financial products, you need to focus on getting a product that will benefit only you. Did you know that a salesperson’s true colors will show through if they aggressively try to sell you their pitch? An agent or representative of a financial services firm will push a product on you in order to maximize their commission or fee.
So, it is advisable not to believe everything they say from the start. To choose the right product for your needs, you must first determine your specific investment needs as well.
Even if a product is overly-hypes, it doesn’t mean it will work for you. So, feel free to ask as many questions as you want, to have a better understanding of where your money goes to.
After every rise, there’s a fall
You can’t control financial products because they are influenced by certain factors like volatility, market shifts, etc. So, it’s only logical to expect a fall when you’ve once experienced a rise.
Investments, for example, always come with their own benefits and risks. So, you need to really think things through before making an investment. Even if your investment doesn’t bring you a lot of money right from the start, who’s to say it won’t in the future?
People that promise you constant success and superior performance are usually the ones who miss-sell financial products to people. So, don’t make the mistake of believing them right away. Check out this link for more.
Don’t be ignorant
New products are constantly being invented and sold on the market. One of the major causes people make a bad financial decision or get involved in a miss-sold financial scenario is because they fail to research the products they want to buy.
This is how scammers get you. They can convince you that a particular product can outperform all the others you’ve encountered and influence you to buy it right away.
Once the sale is completed and you go home, you will discover that nothing of what they said is the truth. On the other hand, if you do your own research and come prepared in advance about what you need to buy, you won’t be a victim of a miss-sold scenario.
What else to do?
If you’ve somehow ended up being a victim of miss-selling, you can contact professionals specifically trained to help those like you get their money back. If you feel like you can’t handle the process on your own turn to experts instead! Good luck!