Frequently asked questions

Taking legal action against a financial advisor or provider can seem a
daunting prospect for anyone, particularly if they haven’t experienced
it before. APJ Solicitors are experts in their field and will support you
through each stage of the process and are available to answer all your
questions giving your confidence that you have the right team on your
side. If you’re thinking about taking action, or if you’re not sure your
situation qualifies for redress, or if you just want to know a bit more
about the process take a look at our FAQs below.

PPI+

What is Plevin? 

Susan Plevin took legal action against Paragon Personal Finance Ltd after she had PPI added to a loan. The retired lecturer discovered that 71.8 percent of the PPI premium was taken as commission.

Susan argued that the failure to disclose this commission level amounted to an unfair contractual relationship.

In 2014, the Plevin vs Paragon Personal Finance Ltd (Plevin) case was heard by the Supreme Court. The court ruled that as the PPI seller failed to disclose to Susan Plevin that it had received a large commission from the product provider, this amounted to an unfair contractual relationship under the 1974 Consumer Credit Act.

What is an unfair contractual relationship? 

An unfair relationship is found when a lender has mis-sold a financial product for personal gain. The relationship is established in the purchase of financial products such as mortgages or loans.

In many cases, lenders paid a commission to brokers who arranged the loans, which was added to the cost of the loan, even when the customer wasn’t aware and/or it wasn’t required by consumers.

If a customer has taken out a loan and the lender has not disclosed how much commission they received, it’s likely that they have formed an unfair contractual relationship. 

Mis-sold pensions and investments

What is a SIPP?

A self-invested personal pension, or SIPP is a flexible retirement investment option designed specifically for those who want to manage their own fund and make their own investment decisions.

While standard pensions are managed for you, SIPPs afford much more freedom, allowing you to stay in control of your savings, and meaning you can switch your investments, whenever and wherever you choose.

Mis-sold mortgages

What is a mis-sold mortgage?

Mortgages are a type of loan which are taken out either to buy a home, or to release funds from your home for other purposes.

They are classed as mis-sold if you could have had a better deal or if you didn’t receive correct advice from your financial or mortgage advisor.

You should have a clear understanding of all the features of your mortgage, including any risks that might be involved. The Financial Conduct Authority states that mortgage advisors must comply with statutory principles to treat customers fairly, including giving sound advice.

Financial mis-selling

What is the Financial Conduct Authority?

The Financial Conduct Authority is an independent body set up in 2013 by the Government, that regulates over 58, 000 financial services firms, to protect consumers and ensure that all those that use these service get a fair deal.

What is the Financial Ombudsman Service?

The Financial Ombudsman Service is an independent body set up in 2000 by the Government, that helps consumers settle disputes with financial services firms, and each complaint is thoroughly investigated to ensure that those that use these services are treated fairly.

What is the Financial Services Compensation Scheme?

The Financial Services Compensation Scheme was set up in 2001 by the Government, that protects consumers when financial services firms “go bust”, but the maximum pay-out is £50,000 which in large numbers of cases is only a fraction of the losses incurred.