The UK Pension Scandal of the 1980s might be a long-off memory, but it certainly has not been all that long since a wave of pension misselling claims swept the UK by a storm and almost caused the complete breakdown of the finance and insurance business in the UK. This is why the Pension Scandal of the 1980s is still fresh in the minds of many people who lived through it.
With that said, because many individuals really have a short-term memory, there is currently a new wave of modern Pension Scandal that is looming in the background. In fact, if you have made a pension fund transfer recently, you may have already been a victim of this new form of financial misselling.
In this article, we will teach you how to avoid getting victimized by this new brand of pension scandal and what you can do if you believe that you may have already been a victim.
What is a financial misselling?
Basically, a financial misselling happens when you are sold a product that does not actually suit your needs. The financial company might use attractive offers such as low premium amortizations and high rewards within a relatively short span of time in order to attract you into transferring funds out of your original state or employer’s pension scheme into a new financial product that the finance company is selling.
The basic violation of your rights in a financial misselling is that of your right to be properly informed of the true nature of the product that you are buying. While the company might offer you attractive benefits and other rewards for transferring funds out of your original pension scheme, you may not have been fully apprised of the dangers of making such a fund transfer. For one, you forfeit all the benefits that have already accrued from your original pension scheme by transferring your funds to a new one. Secondly, the new financial product might actually be a high risk, high reward type of product wherein you may actually lose money in the long run or make just enough to recover what you have paid on your insurance premium – surely, this is not the type of product that you wanted – but it may be the type of product your were sold. This is the essence of a financial misselling.
Pension Scandal – What Can you do?
The first and most basic thing that you can do in case you suspect that you were missold a financial product is to get in contact with the company that sold you the product. Make a formal complaint in writing asking them to respond to your complaint. The same thing is true if you were missold a
financial product through your company’s financial advisor. Complain directly to your financial advisor and ask the company to run the complaint through their internal grievance mechanism.
If your complaint is not being handled as well as you would like
You have a resort to the financial ombudsman in case you feel that your complaint has not been handled as well as you would like or if it is being ignored. Also, it never hurts to seek legal advice from a qualified solicitor.