Understanding Upselling of Add-On Products and Your Rights

What is “Upsell” of Add-on Products?

What is “Upsell” of Add-on Products?

When you take out a credit product – such as a loan, credit card, or finance agreement – you may be offered extra products or services alongside your main purchase. This practice is known as “upselling” add-on products. In the context of credit, upselling means encouraging you to buy additional features or protection that are not essential to the main credit agreement.

Common Examples of Add-on Products

Some of the most frequently upsold add-ons include:

• Payment Protection Insurance (PPI): Designed to cover your repayments if you become ill or lose your job, but often expensive and not suitable for everyone.
• Credit Insurance: Offers cover for your outstanding balance in certain situations, but may duplicate existing cover you already have.
• Extended Warranties: Provide additional repair or replacement cover for goods bought on credit, which may overlap with your statutory rights or manufacturer’s warranty.

These products are often presented as beneficial, but they may not always be necessary or tailored to your needs.

Why Add-ons Can Be Unnecessary or Unsuitable

Add-on products can sometimes be unsuitable because:

• They may not apply to your circumstances. For example, PPI might not pay out if you are self-employed or have pre-existing medical conditions.
• You could already be covered elsewhere, such as through your employer or another insurance policy.
• They increase the overall cost of your credit agreement, sometimes significantly, without adding real value.

It’s important to carefully consider whether you actually need these extras before agreeing to them.

How Upselling Differs from Straightforward Sales

With straightforward sales, you choose the main credit product based on your needs. Upselling, however, involves additional pressure or encouragement to buy optional extras. Sometimes, these add-ons are bundled into your agreement without clear explanation, or you might feel that you have to accept them to get approved for credit. This is different from simply being offered a credit product and deciding whether it’s right for you.

How Mis-selling Can Occur During Upselling

Mis-selling happens when you are sold an add-on product that isn’t right for you, or when important information is withheld or misrepresented. For example, you might not be told about exclusions in an insurance policy, or you may not realise that buying the add-on is optional. In some cases, you could be charged for an add-on you didn’t agree to at all. To understand the broader issues around this, see our guide to mis-selling of credit products.

Understanding Your Rights

You have legal rights when it comes to add-on products. The Financial Conduct Authority (FCA) sets rules requiring clear information and fair treatment when credit products and add-ons are sold. You must be told whether an add-on is optional, what it costs, and what it covers. If you were misled or pressured into buying an unnecessary add-on, you may be entitled to a refund or compensation.

If you think you’ve been affected by the upsell of add-on products, it’s important to review your agreement and seek advice on your options. Being informed helps you avoid unnecessary costs and ensures you only pay for products that genuinely benefit you.

Common Issues with Add-on Products

Common Issues with Add-on Products

Many people find themselves paying for extra products or services – such as insurance, payment protection, or credit monitoring – when taking out loans, credit cards, or other financial agreements. Unfortunately, these add-ons are sometimes sold in ways that are unfair or misleading, leaving consumers with products they don’t need or fully understand. Below, we explore some of the most common issues associated with the upsell of add-on products.

Pressure and Misleading Sales Tactics

It’s not uncommon for sales staff to use high-pressure tactics to encourage customers to buy add-ons. You might be told that an insurance product is “essential” to get approved for credit, or that a payment protection plan is required, when in reality, these extras are optional. In some cases, you may not even realise you’ve agreed to an add-on until you see it on your statement.

Aggressive sales approaches can include persistent follow-up calls, limited-time offers, or making you feel rushed into a decision. These tactics are not only unfair but can also breach consumer protection laws, which require that products are sold honestly and transparently.

Lack of Clear Information

Another frequent problem is the lack of clear, upfront information about the cost, benefits, and terms of add-on products. You may not be told exactly how much the add-on will cost over time, what it covers, or if there are any exclusions that could prevent you from making a claim.

Without clear information, it’s difficult to decide if the product is right for you. This lack of transparency can lead to confusion and, in some cases, financial harm if you end up paying for something that doesn’t suit your needs.

Examples of Unfair Practices

Unfair practices can take many forms, including:

• Hiding key details in the small print or failing to mention important limitations.
• Automatically adding products to your agreement unless you actively opt out.
• Suggesting your application will be declined if you don’t purchase the add-on.
• Failing to check whether the product is suitable for your personal circumstances.

Such practices are not just unethical – they may also breach rules set out by the Financial Conduct Authority (FCA) and consumer protection laws. The Competition and Markets Authority (CMA) also plays a key role in investigating and tackling unfair behaviour in the market.

Unsuitable or Unwanted Products

When add-ons are sold without proper explanation or suitability checks, you can end up with a product that’s unnecessary or doesn’t offer any real benefit. For example, you might be sold payment protection insurance (PPI) when you’re not eligible to claim under its terms, or offered an insurance policy that duplicates cover you already have elsewhere.

These situations are often the result of mis-selling, which is when a product is sold in a way that is unfair or misleading. If you suspect you’ve been mis-sold an add-on, you may have grounds to seek a refund or compensation.

Financial Impact Over Time

Paying for unnecessary add-ons can have a significant financial impact, especially if the costs are added to your monthly payments or accrue interest over time. Even small extra charges can add up, making it harder to manage your finances or pay off debt.

Being aware of the warning signs can help you avoid these pitfalls. For more advice on recognising unfair practices and protecting yourself from similar issues, see our tips on spotting and avoiding scams.

If you believe you’ve been mis-sold an add-on product, it’s important to know your rights and the steps you can take. The Competition and Markets Authority (CMA) provides further information on consumer protection and what to do if you think you’ve been treated unfairly.

Your Rights if You’ve Been Mis-sold Add-on Products

When you buy a credit product, such as a loan or credit card, you may be offered extra services or “add-ons” like insurance, payment protection, or credit monitoring. UK consumer protection laws are in place to ensure you are treated fairly and given all the information you need to make an informed choice. If you believe you’ve been mis-sold an add-on product, it’s important to understand your rights and what steps you can take.

Consumer Protection Laws Covering Mis-selling

The Financial Conduct Authority (FCA) regulates how credit and related add-on products are sold in the UK. Under the Consumer Credit Act 1974 and FCA rules, firms must act honestly, give clear information, and ensure products are suitable for your needs. If these standards aren’t met, and you end up with a product you didn’t want, need, or understand, you may have been mis-sold.

Your Right to Clear, Honest Information

Before you agree to any add-on, you have the right to receive clear, accurate, and easy-to-understand information about what the product is, how much it costs, and whether it is optional. Sellers must not pressure you or hide important details in the small print. You should be told if the add-on is required, or if you can shop around for a better deal elsewhere.

What Counts as Mis-selling?

Mis-selling happens if you were:

• Not given enough information to make an informed decision.
• Pressured or misled into buying an add-on you didn’t want or need.
• Sold a product that was unsuitable for your circumstances.
• Told an add-on was compulsory when it was actually optional.
• Not made aware of important exclusions or limitations.

For example, if you were sold payment protection insurance (PPI) even though you were self-employed and the policy wouldn’t cover you, that could be mis-selling. For more details on what counts as mis-sold credit products, see our dedicated guide.

Was the Add-on Unsuitable or Unnecessary?

Ask yourself:

• Did the salesperson explain what the add-on covered and whether it was right for you?
• Were you told about any restrictions or situations where the product wouldn’t pay out?
• Did you already have similar cover elsewhere, making the add-on unnecessary?
• Did you feel rushed or unclear about what you were buying?

If the answer to any of these questions is “no” or you felt pressured, the add-on may have been unsuitable or unnecessary for you.

Your Right to Complain and Seek Redress

If you think you’ve been mis-sold an add-on product, you have the right to make a complaint to the provider. You should explain why you believe the product was mis-sold, provide any evidence you have (such as emails, paperwork, or notes from phone calls), and say what outcome you want – such as a refund or compensation.

If the provider doesn’t resolve your complaint, you may be able to escalate it to the Financial Ombudsman Service for an independent review.

Remember, you do not have to accept being mis-sold an add-on product. UK law is on your side, and there are clear steps you can take to get your money back or seek compensation for any harm caused. For further information about your rights and how to take action, see our page on mis-sold credit products.

How to Claim a Refund or Compensation

How to Claim a Refund or Compensation

If you believe you’ve been mis-sold an add-on product – such as insurance, payment protection, or other extras – you have the right to seek a refund or compensation. Here’s a clear, step-by-step guide to help you through the process.

1. Gather Evidence to Support Your Claim

To make a strong case, collect as much information as possible about the product and how it was sold to you. Useful evidence includes:

• Copies of agreements or contracts for the add-on product.
• Emails, letters, or written confirmation of what you were told at the time of sale.
• Bank statements or receipts showing payments.
• Notes of any phone calls or meetings, including dates and names of people you spoke to.
• Promotional materials or adverts related to the product.

This evidence will help show whether you were given clear, fair information and whether the product was suitable for your needs.

2. Check if Your Rights Were Breached

Mis-selling can happen if you were not given enough information, if the product was unsuitable, or if you were pressured into buying it. For more on your legal rights and protections, see this guidance on mis-sold add-on products.

3. Contact the Company That Sold You the Add-On

Start by making a formal complaint to the business that sold you the product. You can usually do this by phone, email, or letter. In your complaint, be clear about:

• What product was mis-sold.
• Why you believe it was mis-sold (e.g., lack of information, unsuitability, or pressure to buy).
• What outcome you want (refund, compensation, or cancellation).
• Any evidence you have.

Most companies have a complaints procedure, which you can find on their website or by asking their customer service team.

4. Keep Records of All Correspondence

Throughout the process, keep copies of all letters, emails, and notes of phone conversations. Record dates, times, and the names of people you speak to. This will be important if you need to escalate your complaint.

5. Possible Outcomes

Once the company has reviewed your complaint, they may:

• Offer a full or partial refund of the fees you paid.
• Pay compensation for any losses you suffered.
• Cancel the add-on product.
• Reject your complaint (with reasons).

If you’re happy with their response, they will arrange the refund or compensation directly.

6. Escalate to the Financial Ombudsman Service

If the company does not resolve your complaint within eight weeks, or if you’re unhappy with their response, you can take your case to the Financial Ombudsman Service. This is a free, independent service that helps settle disputes between consumers and financial businesses. You can find more information and submit a complaint on the Financial Ombudsman Service website.

7. Tips for a Smooth Process

• Be clear and concise in your complaint.
• Organise your evidence before contacting the company.
• Keep a timeline of events and responses.
• Respond promptly to any requests for more information.

By following these steps, you can improve your chances of receiving a fair outcome if you’ve been mis-sold an add-on product. If you need more detail about your rights or the complaints process, explore the resources linked above.

Examples of Add-on Products Often Mis-sold

Examples of Add-on Products Often Mis-sold

When taking out credit or finance, you may be offered extra products or services – often called “add-ons” – that are supposed to protect you or enhance your agreement. However, these add-ons are sometimes sold in ways that are unfair, misleading, or simply unnecessary, leaving you with costs you didn’t expect and extra debt you didn’t need. Understanding which products are commonly mis-sold can help you recognise if you’ve been affected and take action.

Payment Protection Insurance (PPI)

One of the most notorious examples of mis-sold add-on products is Payment Protection Insurance (PPI). PPI was designed to cover your loan or credit card repayments if you became ill, lost your job, or otherwise couldn’t pay. However, millions of people were sold PPI policies that were unsuitable, unnecessary, or added to their accounts without proper explanation or consent. Common issues included:

• Not being told PPI was optional.
• Being told you had to buy PPI to get the loan or credit.
• Being sold PPI when you were ineligible to claim (for example, if you were self-employed or had a pre-existing medical condition).
• Not being given clear information about the cost or terms.

For more detail on how PPI worked and why so many people were affected, see this guide on Payment Protection Insurance (PPI).

Credit Insurance

Credit insurance is similar to PPI and is meant to cover your repayments in specific situations, such as redundancy or illness. However, credit insurance has also been widely mis-sold for reasons such as:

• The policy being unsuitable for your circumstances.
• Lack of clear explanation about what the insurance covers.
• High costs hidden in the small print.
• Being added to your agreement automatically, without your informed consent.

If you’ve been sold credit insurance, it’s important to check whether you actually needed it and if you were given all the necessary information at the time.

Extended Warranties and Service Plans

Extended warranties and service plans are often offered when you buy items on finance, such as electronics, appliances, or vehicles. These products promise extra protection or repairs after the manufacturer’s warranty expires. Issues to watch out for include:

• Being pressured to buy a warranty you don’t need or already have through another policy.
• Not being told that the manufacturer’s warranty may already provide sufficient cover.
• Unclear terms about what is actually covered.
• High costs that are added to your credit agreement, increasing the total amount you repay.

This is particularly relevant in the context of car finance, where consumers have faced similar problems. If you’re interested in how mis-selling can occur in this area, you may want to read about mis-sold car finance claims.

Other Credit-related Add-ons

There are other add-on products that can be mis-sold alongside credit agreements, including:

• Identity theft protection
• Card protection plans
• GAP insurance (which covers the difference between a car’s value and what you owe on finance)
• Breakdown cover or roadside assistance bundled with car finance

Always check whether these products are truly necessary, and whether you’ve been given full information before agreeing to them.

How Add-ons Can Increase Your Debt

The cost of add-on products is often added to your loan or finance agreement, meaning you pay interest on them as well as the original debt. This can significantly increase the total amount you repay and make it harder to manage your finances. In some cases, these extra costs can push you into financial difficulty or make existing debt problems worse.

What Are Your Rights?

Under UK law, lenders and brokers are required to be clear and fair when selling add-on products. The Financial Conduct Authority (FCA) sets strict rules about how financial products should be sold, including requirements for transparency, suitability, and informed consent. If you believe you were mis-sold an add-on product, you may have the right to claim a refund or compensation.

For more guidance on spotting mis-selling and taking action, see our advice on identifying mis-sold add-ons and your next steps.

Managing Your Debt After Being Sold Unwanted Add-ons

Managing Your Debt After Being Sold Unwanted Add-ons

Discovering that you’ve been sold unwanted add-on products – such as insurance, payment protection, or other credit extras – can be frustrating, especially if these products have added to your debt without your full knowledge or consent. Mis-sold add-ons not only increase your monthly payments but can also make it harder to keep up with your financial commitments, potentially leading to further debt problems.

How Mis-sold Add-ons Affect Your Finances

When extra products are added to your credit agreement without proper explanation or consent, you may find yourself paying for services you don’t need. This can increase your total borrowing costs, push you closer to your credit limit, and make it more difficult to clear your balance. Over time, these additional charges can lead to missed payments, late fees, and even a negative impact on your credit score.

Practical Steps to Manage Debt After Mis-selling

If you’ve discovered unwanted add-ons on your account, it’s important to act quickly:

• Review your statements: Check your credit agreements and statements carefully to identify any charges for products you didn’t agree to.
• Contact your lender: Raise the issue with your lender, ask for a clear explanation, and request removal of any unwanted products. If you believe the product was mis-sold, you can also ask for a refund.
• Prioritise your payments: Make sure you continue to pay at least the minimum payment on your main debt to avoid further charges and damage to your credit record.
• Keep records: Save copies of all correspondence and notes from phone calls with your lender, as these may be useful if you need to escalate your complaint.

For more detailed guidance on managing your finances after dealing with mis-sold products, see our advice on managing debt effectively.

When to Seek Professional Help

If the additional debt from unwanted add-ons is making it difficult to keep up with your payments, or if you’re unsure how to resolve the issue with your lender, it may be time to seek professional advice. Debt advisers can help you understand your options, negotiate with creditors, and put together a plan to get back on track.

If you’re specifically struggling with credit card payments, our resource on credit card debt struggles offers practical tips and support.

Avoiding Further Problems with Credit Add-ons

To prevent similar issues in the future:

• Always read credit agreements and product details carefully before signing.
• Don’t feel pressured to accept add-ons you don’t want or need.
• Ask questions if you’re not sure what a product covers or whether it’s required.
• Regularly check your statements for unfamiliar charges.

The Financial Conduct Authority (FCA) provides guidance and information to help consumers understand their rights and what to do if they think they’ve been mis-sold a financial product.

Support and Resources

If you’re finding it hard to manage your debts, remember that help is available. Free, confidential advice can make a big difference, whether you need support with a complaint, help understanding your rights, or assistance managing your repayments. Visit the resources linked above for more information and take the first step towards regaining control of your finances.

Related Topics and Further Reading

When dealing with the upsell of add-on credit products, it’s important to understand the wider landscape of consumer protection and your rights. Here are some related topics and further reading to help you deepen your understanding and protect yourself in future financial decisions:

If you want to explore the broader context of your rights and what to do if you’ve been sold financial products unfairly, our page on mis-selling of credit products provides a comprehensive overview. This includes information about different types of mis-selling, how to spot unfair practices, and the steps you can take to seek redress.

Many people encounter similar issues with modern payment options, especially when it comes to Buy Now, Pay Later misinformation. This resource explains how these agreements can sometimes be presented in a misleading way, what to watch out for, and how to challenge unfair terms or charges.

If you’re concerned about other types of credit mis-selling, such as in the motor finance sector, you may find our guide on mis-sold car finance claims helpful. It covers how to identify if your car finance agreement was mis-sold and what steps you can take to claim compensation.

For those interested in the legal framework that underpins your rights, the Financial Services and Markets Act 2000 sets out the key rules for the regulation of financial services and consumer protection in the UK. This legislation is central to understanding how financial products should be sold and what legal obligations providers must follow.

Exploring these related topics can give you a clearer picture of your rights and options if you suspect you’ve been mis-sold a credit product or add-on. By staying informed, you’ll be better equipped to challenge unfair practices and make confident decisions about your finances. If you have further questions or want to learn more about a specific issue, we encourage you to explore the links above for detailed guidance.