Different types of financial mis-selling

When selling financial services, it’s critical that service providers and brokers do so in a transparent, fair, and non-misleading way.

However, this doesn’t always happen. Many people in the UK have been sold financial products like loans and mortgages that aren’t suitable for them.

The good news? You may be eligible to receive compensation for any financial losses.

Here are some of the different types of financial mis-selling people experience.

PPI payments (Plevin claim)

Millions of people across the country have received compensation for being mis-sold payment protection insurance, or PPI, by their banks and financial providers.

Some people were pressured to take out insurance on loans, credit cards, and mortgages when they didn’t need it, or were unaware that PPI had been taken out in their name. Many businesses received substantial commissions for convincing customers to take PPI out.

The ‘Plevin rule’ states that if over half of the cost of your PPI went as commission to the lender, and this wasn’t made clear to you, you’re entitled to compensation.

Many people think they can’t make a PPI claim as the deadline for claims has now passed. While this is true, you may still be eligible to claim if you took out PPI after 6th of April 2007 or before 2007 and continued to pay it after 6th of April 2008.

Find out more about PPI mis-selling and Plevin claims.


It’s vital that we all have a good pension in place so we can relax and enjoy our retirement. However, some people are encouraged to enrol in pensions that leave them with less money than they hoped for.

Pension mis-selling occurs when people are encouraged to invest or transfer their money into a pension where the risks have not been clearly explained to them. For example, if you’re advised to move your money from a workplace pension into an alternative pension scheme, that could be considered mis-selling.

There are a lot of different pension schemes out there, and the way pensions work can be complex. This means we have to put our faith in the hands of pension companies and brokers. If they give the wrong or misleading advice, the results can be devastating.

Find out more about pension mis-selling.

Undisclosed commission

Many brokers make their money by receiving a commission from a lender in return for a referral. This is absolutely fine as long as this is made clear to the customer and the broker remains impartial and independent throughout. If not, this is when issues begin.

Brokers are meant to act in the customer’s best interest and suggest the right loan or mortgage for their specific needs. If a broker suggests a particular lender because they know they’ll get good money for it, or do not disclose that they will get a commission, that could be considered mis-selling.

Businesses often run into issues with brokers too. We’ve found many companies using a broker to get the best deal on their gas and electricity bills, only to find themselves locked into an undesirable agreement. Brokers often get more money for committing customers to a longer contract.

Find out more about undisclosed commission and business energy claims.

Personal contract purchase claims (PCPs)

A car is a big financial commitment, and a PCP loan can be a good way to get on the road quickly. However, there is often a lack of clarity over how the loan needs to be paid off.

PCPs work by the customer making small monthly payments, with a larger ‘balloon’ payment at the end of the contract to pay the remaining balance. The problem is that this balloon payment can be significant, sometimes half the initial cash price of the car. Unfortunately, many people aren’t advised of this and struggle to pay off the vehicle as a result.

Find out more about PCPs.

SJS Legal: specialist advice for if you have been mis-sold

It’s frustrating when you know you’ve experienced financial mis-selling. Whether you’ve been mis-sold a pension, loan, or business energy contract, we’re here to help.

Our legal specialists provide advice and guidance throughout the claims process to people and businesses across the country. No matter your situation, we use our expertise to get you the results you deserve.

See if you’re eligible to claim today.