Over 60% in Devon may have been mis-sold investments, putting life savings at risk

Thousands of consumers in Exeter and Devon could have been mis-sold investment products, according to new research from leading Exeter-based Claims Management Company EMCAS.

EMCAS, which to date has helped over 500,000 consumers reclaim money which is rightfully theirs, found that in Devon alone over 60% of those surveyed had not been asked about their attitude to risk during the advice process for choosing an investment product – a crucial indicator, which helps consumers choose the product best suited to their needs. Worryingly, just one in five had all the alternative investment products explained to them while two thirds failed to have the full pros and cons of their products outlined as part of the sales process. Failure to ask any of these vital questions or explain products fully could be a sign of mis-selling.

Of those polled only a third said their investment adviser had been upfront about how they make their money. More alarmingly, less than one in five were confident that they were given the right advice by their financial advisor in the first place.

Bad investment advice or poor product choice can have a devastating effect on consumers’ lives particularly when the sums of money involved are taken into account. In Devon alone 72% of consumers have savings of up to £50,000 while almost a quarter have saving pots of between £10,000-£50,000.

When things go wrong, people face years of potential heartache watching their hard-earned savings being impacted, so it comes as no great surprise that in Devon almost one in six say that if their savings and investments fail to deliver, they will have to work beyond their retirement age.

Despite this, over 66% of those polled in Devon said that they are either unlikely or very unlikely to complain about their savings and investment products, instead blaming themselves for making a bad choice. Only 12% in Devon say they are considering financial redress for poor performing investments and savings, and this comes despite nearly £50m being paid out in the first six months of 2012 alone to consumers who complained about investment products.

As a result EMCAS is urging consumers to get to grips with their investments to make sure they understand the nature of the products they hold. The company believes that this is crucial if consumers who have been mis-sold a product are to seek redress, particularly as nationally two-thirds of us admit that we are unaware that mis-selling of investment products is even possible.

Craig Bernhardt, CEO of EMCAS, said: “Consumers need to take charge, to look at their investments and ask themselves – why did I choose this product? What was it about the advice I was given that made me think it was right for me? Did the advisor talk to me about how happy I was to take risks? Is this product performing as I expected it to?”

“There will be many consumers who took out investment products that knew they had risks attached, and which are potentially performing poorly in the current stock market environment. But that is very different from those consumers who now look at their investments and don’t understand how they were ever suited to their needs. These people need to look long and hard at their investments and then ask further questions about the advice they were given. This could well unearth that they have a case to be answered.”

Consumers wishing to pursue a claim can find out more by visiting www.emcasclaims.co.uk For claims call 0800 093 4309