Can I Cancel A Mis-Sold Insurance Policy
In Ireland over the past decade or so finance products and purchases have soared dramatically. As a result of the Celtic Tiger credit became extremely easy to obtain and as a result thousands of borrowers delved into the world of financial purchases. Purchases were made for a wide variety of finance products including Loans, Credit Cards, Mortgages, Insurance Policies, Investments & Pensions.
When consumers look to take out such expert financial agreements they usually do so only with trusted and professional lenders or brokers. They feel assured and relaxed in an environment that specifically tailors in the products they are looking to secure. The problem for borrowers however lies in the fact that these lending institutions and brokers were not always following relevant consumer guidelines and government legislation and that is when many borrowers fell victim to mis-selling.
What is mis-selling? Mis-selling can be used to describe a financial product which has numerous examples of flaws, errors, mistakes or which is unfairly balanced in favour of a lending institution. For example when a credit card application is taken out a consumer will have to sign a credit agreement which should by law be fairly balanced between the lending institution and the consumer(s) and include all information relevant to the credit being secured. In Irish law this document is governed by the Consumer Credit Act 1995 and is legally required to have all vital information relating to the credit such as Credit Amount, Interest applicable, repayment terms, termination charges, APR variations and much much more. If any of these requirements are not clearly included in the credit agreement it can be considered flawed, invalid or fundamentally unenforceable.
Other forms of mis-selling happen when a Finance product or insurance product is sold without the consumers’ best interest at heart. It is not uncommon to hear of a credit company or introducer selling a product or cover which does not benefit the borrower only the profits of that particular seller. This is considered a high form of mis-selling as purchasers use these companies and intermediaries as they believe it is these companies with the professional knowledge and expertise who will guide them along a suitable path not one which only benefits the introducer. The financial services ombudsman in Ireland in 2009 had over 7000 complaints direct from consumers relating to being mis-sold, misinformed or misadvised and they expect this number to increase for 2010 with consumers now critically inspecting the contracts of the financial documents they have entered into.
With consumer complaints on therise and an already stretched environment within the government complaints department it is becoming increasingly relevant for individuals to have an alternative to the Financial Ombudsman. The Financial Ombudsman is a government body set up to resolve disputes between lenders and consumers on an even and unbiased level. The ombudsman is neither for nor against the consumer. It is an impartial process which is required to look at all details relating to a case and to mediate an acceptable resolution for all parties. The ombudsman is a knowledgable and reliable service although it is not one that is completely geared towards the consumers.
Compensation companies are a favoured avenue for consumers who have complaints against financial institutions. Not only is it the sole purpose of these organisations to uncover and prove mis-selling but they are completely geared towards the consumers and not the financial companies. It is these companies who completely have the consumers best intentions at heart and from appointment will be working with and for the consumer. It is because of these obvious benefits that many consumers decide to lodge formal claims and complaints against lenders through these types of companies and not the Financial Ombudsman
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