If something’s gone wrong with a financial product, you’ve probably wondered: “Was I mis-sold, or did I just get bad advice?” It’s a question thousands of people ask themselves, and the answer matters more than you might think.

Understanding the difference between poor advice vs mis-selling isn’t just about terminology. It determines whether you have grounds for compensation and what your next steps should be. Let’s break it down in plain English.

What Actually Counts as Poor Advice?

Poor advice is when a financial professional gives you guidance that wasn’t ideal, but didn’t necessarily break any rules. Think of it like this: they followed the proper process, ticked the right boxes, but the recommendation still wasn’t great for your situation.

For example, an adviser might suggest an investment that later performs poorly. If they’d asked you the right questions and followed FCA regulations, this might just be unfortunate rather than mis-selling.

Poor advice doesn’t automatically mean you’re entitled to compensation, though it’s always worth looking into further if you’ve lost money or been left in financial difficulty.

So What is Mis-Selling Then?

Mis-selling is more serious. It’s when someone sells you a financial product inappropriately, and it usually involves one or more of these red flags:

• Important information was hidden from you
• They misrepresented what the product actually did
• They knew it wasn’t suitable for your circumstances
• They didn’t explain the costs or risks properly
• You felt pressured into buying
• They didn’t check if you could actually afford it

The Financial Conduct Authority sets strict rules about how financial products must be sold. When those rules aren’t followed, that’s mis-selling, and you may well be entitled to compensation.

The Key Differences That Matter

It’s About Following the Rules

Poor advice might be a bad judgement call. Mis-selling is when someone hasn’t followed the regulations properly, whether they meant to or not.

The Solicitors Regulation Authority (SRA) and FCA have clear guidelines. Mis-selling means those guidelines were breached.

Your Chances of Getting Compensation

Here’s the practical difference: proving poor advice means showing the adviser’s recommendations fell below professional standards. That can be tricky.

Proving mis-selling is often more straightforward because you’re showing that proper procedures weren’t followed or information was deliberately withheld. This gives you much stronger grounds for a claim.

Real Examples of Mis-Selling

Sometimes it’s easier to understand poor advice vs mis-selling when you see real-world examples.

Car Finance That Shouldn’t Have Been Sold

Mis-sold car finance is one of the biggest issues we see. Dealerships often:

• Earned secret commissions they never told you about
• Didn’t properly explain the full cost of PCP or HP agreements
• Sold you finance you couldn’t really afford
• Made it seem like their finance was your only option

If any of this sounds familiar, you might have been mis-sold.

Hidden Commission on Loans and Credit

Many people were sold loans, credit cards, and mortgages without being told the broker was earning commission. That’s a clear conflict of interest and counts as mis-selling.

You deserved to know if someone was getting paid to recommend a particular product to you. If they didn’t disclose that, they broke the rules.

How Can You Tell If You Were Mis-Sold?

Ask yourself these questions about when you took out the product:

Did they give you all the information? If costs, risks, or commission arrangements were kept quiet, that’s a problem.

Was it actually suitable for you? If you were sold something you couldn’t afford or didn’t need, that points to mis-selling rather than poor advice.

Did they rush you? Legitimate financial advice doesn’t involve pressure tactics. If you felt pushed into a decision, that’s a red flag.

Were proper checks done? They should have assessed your circumstances properly. If they didn’t, or if they seemed to skip steps, you may have grounds for a claim.

What Are Your Rights?

UK consumers have strong protections when it comes to financial products, thanks to the Consumer Rights Act 2015 and FCA regulations.

If you think you’ve been mis-sold something, you can:

• Complain directly to the company first
• Take it to the Financial Ombudsman Service if you’re not happy with their response
• Get legal help to pursue compensation

Just remember: time limits apply. If you suspect mis-selling, it’s worth investigating sooner rather than later.

The Claims Process (Simplified)

Once you’ve worked out the difference between poor advice vs mis-selling and think you have a case, here’s what happens:

You’ll need to gather your paperwork – contracts, emails, anything showing what you were told when you took out the product.

Then you submit a formal complaint to the company. They’ve got eight weeks to respond.

If their response isn’t satisfactory, you can escalate to the Financial Ombudsman or get legal representation. This is where having SRA-regulated solicitors on your side really helps.

Why Getting Legal Help Makes Sense

YYou have the right to make a complaint yourself, completely free of charge. You can contact the company directly, and if you’re not satisfied, escalate to the Financial Ombudsman Service. You can also get free, independent advice from Citizens Advice.

However, many people choose to work with solicitors for several reasons:

We understand the difference between poor advice vs mis-selling inside out. We know exactly what the regulations say and can spot breaches you might miss.

Large financial companies also take complaints more seriously when solicitors are involved. You’re more likely to receive fair compensation with professional representation.

At Courmacs Legal, we specialise in mis-selling and consumer claims. We know the regulations, we’ve handled thousands of these cases, and we understand how frustrating it is when something goes wrong with a financial product.

If you’d like to understand how legal fees work for these claims, you can review our fees structure.

Don’t Wait Too Long

Time limits are strict with financial claims. Generally, you have:

• Six years from when you were mis-sold, or
• Three years from when you realised (or should have realised) you were mis-sold

This is why it’s worth investigating sooner rather than later. Even if you’re not certain whether it’s poor advice vs mis-selling, getting it checked out costs nothing initially.

Common Myths Debunked

“I signed the paperwork, so I can’t claim”

Not true. Many people sign agreements without fully understanding them, especially when important information has been hidden. Your signature doesn’t stop you from claiming if mis-selling occurred.

“Bad results mean bad advice”

Not necessarily. Just because a product didn’t perform well doesn’t automatically mean you were mis-sold. What matters is whether proper procedures were followed when it was sold to you.

What You Should Do Next

If you’re still unsure whether you experienced poor advice vs mis-selling, the safest step is to get your situation reviewed. Many cases that seem like simple poor advice actually involve regulatory breaches.

Start by digging out all your documents:

• Original contracts
• Marketing materials you were given
• Emails and letters
• Payment records

You can also get free guidance from Citizens Advice on your consumer rights.

Then consider the circumstances. Were you given time to think? Were alternatives discussed? Was commission mentioned? These details can make all the difference.

Final Thoughts

The difference between poor advice vs mis-selling might seem technical, but it has real implications for your finances and your rights.

Poor advice is frustrating. Mis-selling is a breach of regulations that entitles you to compensation.

Whether it’s car finance, undisclosed commission on loans, or another financial product, don’t assume you have no options just because you signed on the dotted line.

The regulations exist to protect you. Many people who think they simply got poor advice actually have strong mis-selling claims. Getting your case reviewed costs nothing initially, but it could reveal you’re entitled to compensation.

Remember those time limits though. The sooner you investigate, the better your chances of a successful claim.