What if I’m Not Happy?
Complaining about Equity Release Plans
Hopefully, if you decide equity release is right for you, you will be happy with the plan you eventually choose, whether it’s a lifetime mortgage or a home reversion scheme.
If you’re not, getting out of it could be very costly, as you will have to pay back the money youve borrowed, plus interest if it’s a lifetime mortgage, and may also face a penalty payment of several thousand pounds.
Do I Have Any Redress?
If you choose a plan on your own and later realise youve made a poor decision, unless you can prove the provider lied about what you were getting into (and this is very unlikely), you’ll have no one to blame but yourself.
But if you use an independent financial adviser (IFA) and later decide you were badly advised, you may be able to make a case that you were mis-sold and receive compensation.
Grounds for Complaint
You can’t claim you were mis-sold simply because you don’t like the terms and conditions of your particular plan, or you come across one you like better.
To claim mis-selling, you must show you were misled in some way or sold a product that was unsuited to your needs.
Who to Complain to
Both lifetime mortgages and home reversion schemes are now regulated by the Financial Conduct Authority (FCA).
This means any IFA advising on them has to be properly qualified and on the FCA register.
If you have a complaint and your adviser doesn’t deal with it satisfactorily, you can go to the Financial Ombudsman Service.
If it upholds your complaint, you may be eligible for a payout from the Financial Conduct Compensation Scheme.
For more information about this, or to check an adviser is registered, contact the Financial Conduct Authority helpline on 0845 606 1234.