Are you still racking your head as to what to do about Pensions Misselling? While the 1980s may be quite a few decades behind us now, the shadow of the past continues to haunt us through what may be a new wave of pensions misselling scams that have been allowed to be perpetuated in our midst. Therefore, if you are at a loss as to what to do about Pensions Misselling, then you are in the right place. Read on and find out all about financial misselling and what to do about Pensions Misselling if you feel that you are affected.
Is Pensions Misselling Illegal?
The short answer is yes. In fact, this was the very issue back in the 1980s when thousands of people were conned out of their state pensions plan into private pension plans due to a widespread multi-platform marketing campaign launched by banks and private financial institutions. The result is that most people who took money out of their state pensions plan in order to apply the same to a personal pension plan found that they would have been better off with their original state policy because they were never fully-informed of and warned of the risks involved in making the fund transfer.
Misselling is often done in order to induce a potential client into investing in a product that is unsuitable for his purposes or situation. To give you the most basic example, think of a scenario wherein a client was sold a life insurance product when he/she actually has no dependents or potential beneficiaries. This is an example of a misselling because no one except the company that sold the insurance plan stands to benefit from this situation.
There are actually two main types of pensions misselling:
This is really tantamount to fraud. In this type of financial misselling, the seller intentionally makes the product appear to be something that it is not. Taking the previous example, it would be something like making a life insurance product appear to be a long-term investment plan that would eventually result in huge profits for the buyer. The misrepresentation could be in the form of withholding certain pertinent information or simply giving false information.
This is the more common type of pensions misselling that people think of when they think about what to do about Pensions Misselling. This was the most prevalent type of misselling back in the 1980s and it is what is threatening to make a comeback in recent times. It simply means that the client was sold a financial product that is unsuitable for his/her purposes. An even simpler example would be selling an ordinary LED TV to someone when this person is actually looking for a SMART TV with added functionality.
What to do about Pensions Misselling
If you believe that you may have acted upon a misleading piece of advice from an independent financial advisor or from your own company, then you need to act fast. Make a complaint in writing for the financial advisor or for your company to respond to your claim for pensions misselling. This empowers you to complain straight to the financial ombudsman just in case you feel that your complain is not being handled properly.