Do you know What is a pensions misselling scam? In order to avoid being lured into this scam, it is important to be aware of its nature and exactly what it is first. One might call What is a pensions misselling scam? as a high-brow type of legal violation because first of all, it takes someone with financial knowledge or who is at least involved with finances in order to perform it and secondly, being a form of financial misselling, it can be hard and almost impossible to detect when it has actually occurred. There are no obvious, telltale signs that you may have been a victim of financial misselling. Basically if you want to know What is a pensions misselling scam, it is likely to take place when you transfer money out of your savings pot from your employer’s pension scheme and into a private pension based on bad financial advice. Take note that the main issue here is the “bad financial advice” which could have come from your company’s own financial advisor, or from a private third party insurance agent.
Pensions misselling became a hot topic on the news again recently thanks to several high profile cases popping up and being covered by the media, but this is not the first time that a wave of pensions misselling claims flooded the UK. Back in the late 1980s, something similar already occurred and experts are even drawing comparisons between then and now. Back in the 80s when the government allowed more flexibility for people to transfer as much as they wanted out of their state pensions fund, third party pension and insurance providers made a nationwide advertising campaign to sell third party savings funds and coax people into transferring into their particular third party products. As a result of the strong advertising campaign and lack of knowledge back then, thousands of people were lured into high risk personal savings funds that mostly resulted in less benefits than if they had simply left their money alone in their state pension.
How do you know if you may have a claim?
Do you believe that you may have been a victim of What is a pensions misselling scam? There is a simple checklist that you can go through to determine What is a pensions misselling scam and whether you may have been a victim recently. First of all, have you transferred any money out of your employer’s pension fund? Was this decision based on someone else’s advice? Lastly, when you transferred money into your personal savings fund, were you aware of the fact that you could have simply started contributing money into your personal savings fund without touching your original pension? For example, if you had to switch careers or transfer to a new company recently, then you will no longer be able to contribute to your original pension, but you can simply leave your savings pot and its accumulated benefits alone without transferring it to a new personal pensions fund.
What is a pension misselling scam? What to do?
File a written complaint directly with your pension provider and urge them to take action. If the results are unfavourable, then you have a recourse to the ombudsman for favourable action to be taken on your complaint