Misrepresentation, negligence and breach of statutory duty are serious matters, which can lead to bank customers being left financially disadvantaged – or incurring huge losses in investments if, for example, an investment customer has been classified incorrectly.
The agreement and terms of business are usually central to any claim for misrepresentation – and conversations between a bank and its client and instructions a client might have given a bank may also be taken into account by the court.
Under the Misrepresentation Act 1967, banks have a duty to provide clear advice about their services, including investment products, bank accounts, personal and business loans and home loans.
Misrepresentation relates to a statement made by the lender or seller before a transaction or agreement is completed, which acts as an inducement to the customer to sign the agreement or buy the services offered.
If the information contained in the statement proves to be wrong and a loss is incurred as a result, a customer can claim compensation.
Misrepresentation can involve one of three circumstances:
The type of misrepresentation that occurred will govern how a claim for misrepresentation is made – and expert advice from a specialist solicitor with expertise in handling misrepresentation cases is required to assess the case and determine which type of misrepresentation is involved.
There are two types of remedy available to victims of misrepresentation – damages (compensation) and rescission (the contract or agreement is cancelled).
Duncan Lewis banking litigation solicitors can advise at any stage of a claim involving misrepresentation – and have a successful track record in securing compensation (damages) for clients who have been the victim of fraudulent, negligent or innocent misrepresentation.
In some cases, the Consumer Credit Act 1974 may apply to any claim and the Duncan Lewis banking litigation team can advise on this once a misrepresentation claim has been fully assessed.
It is important to seek expert legal advice from Duncan Lewis as soon as misrepresentation is suspected or becomes evident, as continuing with the contract in this knowledge may determine the outcome of any claim.
Time is also of the essence, as continuing with the contract may be deemed as agreeing to the contract or agreement.
For expert legal advice on Misrepresentation, call Duncan Lewis Banking Litigation Solicitors on 0333 772 0409.