This guide is maintained as a current resource for September 2026 and covers only the laws of England and Wales. Information is for general guidance, not legal advice. Consult a qualified solicitor for advice specific to your situation.
Understand your rights if a financial product was mis‑sold in England and Wales. Learn what constitutes mis‑selling, how to complain to providers, when to involve the Financial Ombudsman Service, what compensation you may receive and key deadlines for claims. Your guide to consumer protection and financial redress.
Financial products are sold to millions of people every year in England and Wales, from everyday bank accounts to loans, pensions and investment products. Unfortunately, not all sales are conducted fairly or transparently. When a product is mis‑sold, consumers may have specific legal rights - including the right to complain, pursue redress, and, in some cases, claim compensation.
This guide explains what financial mis‑selling means, your legal rights, the key organisations involved in resolving disputes, how to make a complaint or claim, relevant time limits, and practical next steps.
What Is Financial Mis‑Selling?
Financial mis‑selling happens when a product or service:
- was unsuitable for your needs,
- was sold without proper explanation of risks or features,
- was misrepresented by the provider or adviser,
- involved hidden charges, or
- lacked clear, fair and transparent information.
The Financial Conduct Authority (FCA), which regulates financial firms in the UK, states that financial products must be sold in a way that is “fair, clear and not misleading”.
Examples of commonly mis‑sold products include:
- Payment Protection Insurance (PPI) – historically sold with loans and credit cards but often unsuitable or unnecessary.
- Packaged bank accounts with fees for services you didn't need.
- Unsuitable loans, mortgages, or investment products.
Mis‑selling does not depend solely on financial loss: you can complain even if the product lost value, provided the mis‑selling involved unfair or misleading conduct.
Your Rights When a Financial Product Is Mis‑Sold
Right to Complain to the Provider
Your first step is to make a formal complaint to the provider that sold you the product. This might be a bank, insurer, financial adviser or investment firm.
A proper complaint should set out:
- what was sold,
- why you believe it was mis‑sold,
- how you were prejudiced (financially or otherwise),
- the remedy you seek.
Regulated firms must have internal complaints procedures and must respond within specified time periods.
Right to Take Your Complaint to a Specialist Ombudsman
If the provider's final response is unsatisfactory, or you have not received a final response within eight weeks, you can escalate your complaint to an independent body:
Financial Ombudsman Service (FOS)
The Financial Ombudsman Service handles disputes between consumers and financial services firms. It provides a free service to review complaints and make binding decisions on firms.
The Ombudsman can:
- order the firm to put you “back in the position you would now be in if the mis‑selling had not happened”,
- order payment of compensation for financial loss,
- award compensation for distress and inconvenience in certain circumstances.
This means if a product was mis‑sold, the Ombudsman can direct the firm to refund charges, restructure accounts, pay interest or make other adjustments as appropriate.
Pensions Ombudsman
If the mis‑sold product relates specifically to a pension, you may also be able to complain to the Pensions Ombudsman under the Pensions Ombudsman Scheme.
Time Limits and Practical Considerations
Deadlines for Complaints
There are important time limits for raising complaints:
- For many financial mis‑selling issues (like PPI), regulatory deadlines may apply. For example, the statutory deadline to complain about PPI ended on 29 August 2019, although some court actions may still be possible.
- Generally, you should complain to the provider within six years of the act or omission you're complaining about, or three years from when you became aware of the problem, whichever is later (subject to specific exceptions). Private legal advice can clarify your position in complex cases.
Evidence and Documentation
Strong evidence supports your complaint and improves your chances of success. Useful documents include:
- contracts and terms and conditions,
- correspondence with the firm,
- advertisements or statements made at the time of sale,
- records of financial advice received.
Records of phone calls, emails and promotional materials can be especially important if they contradict what you were told when buying the product.
Compensation for Mis‑Sold Financial Products
Financial Redress Through the Ombudsman
If the Ombudsman decides in your favour, you may receive redress that covers:
- refund of costs or charges directly resulting from mis‑selling,
- interest on sums paid because of mis‑selling,
- compensation for distress and inconvenience where justified.
The Ombudsman determines awards based on fairness and your specific circumstances.
Court Action
In some cases, you may also pursue the matter through the courts rather than the Ombudsman. This may be necessary if the complaint involves complex legal points, high value or statutory deadlines that affect the Ombudsman's jurisdiction.
Before taking court action, consider:
- legal costs vs potential recovery,
- the complexity and time involved,
- whether the Ombudsman route would already provide fair redress.
What Happens After a Complaint Is Upheld
If a complaint is upheld, the financial firm will normally be required to:
- correct the effect of the mis‑selling,
- pay compensation where appropriate,
- provide account adjustments or refunds.
Where the mis‑selling caused significant financial loss, the Ombudsman can award additional compensation. If distress or inconvenience was substantial due to unfair selling or poor handling of the complaint, additional redress may be awarded.
Common Questions About Mis‑Sold Financial Products
Can I still complain if I lost money but was warned of risk?
Yes. Mis‑selling complaints focus on fairness and suitability. However, you cannot claim simply because an investment performed poorly if you were properly informed about the risks.
Do I need a solicitor?
Many consumers pursue complaints without legal representation. The Ombudsman service is free. Legal representation may be useful for complex cases, court claims, or where significant sums are involved.
Can claims be made for newer products like car finance?
Yes. Recent regulatory action and compensation schemes for mis‑sold car finance agreements show evolving areas of mis‑selling beyond historic PPI cases.
Key Takeaways
Consumers in England and Wales have clear rights if they believe they were mis‑sold a financial product. Start by complaining directly to the provider. If that fails, escalate to the Financial Ombudsman Service or, for pensions, the Pensions Ombudsman. These bodies can order compensation to correct financial loss and, in appropriate cases, award compensation for distress and inconvenience. Strong evidence and prompt action improve the likelihood of a successful outcome. For complex or high‑value disputes, legal advice may be prudent.
