A mis-sold pension is a mis-selling investment where an individual is convinced to invest in an unregulated pension scheme. In most cases, the individual is tricked into transferring their investments from a secure scheme to a riskier one that can lead to dire financial situations. Here are the four major forms of types of mis-sold pension:
- Self-invested personal pensions (SIPP)
- Final salary transfers
- Small self-administered scheme (SSAS)
- Occupational pension scheme (OPS)
Mis-sold pension can also occur when a pension company goes bust.
What Happens When Your Pension Company Goes Bust?
If you happen to be in a situation where your pension company goes bust, you are eligible for compensation. However, this compensation is determined by the type of pension you have, the pension company you saved your pension with and if the pension company is registered by the FCA (Financial Conduct Authority).
In the event that your pension meets the requirements for a ‘contract of long-term insurance,’ it gets comprehensive coverage from the Financial Services Compensation Scheme (FSCS) for accepted claims against the money manager. In such a situation, you become entitled to the same level of cover for annuities purchased from pension providers regulated by the FCA.
If you happen to have contracted a SIPP pension company that went bust, you’ll only be eligible for compensation up to £85,000 for claims against them. What you get as compensation for other pensions varies depending on the underlying investment.
What To Do If You Have Been Mis-sold A Pension
It would be best to claim once you have ample evidence that you have been mis-sold a pension. The catch is that there is a window within which you must do this one. In most cases, it is six years from the time you were sold the product, or from three years when you noticed or suspected that something was wrong.
You’d be better off acting as soon as you suspect that you have been mis-sold a pension. There are two ways to go about that.
Make A Claim Yourself
Once it has been determined that you have a mis-selling issue, you can opt to make a free claim via the relevant authorities, such as the Financial Ombudsman Service (FOS). It is free, but the downside is that much paperwork is often involved, and you would have to invest a lot of time and effort.
Contract A Specialist
Some professionals have the training and expertise required to reclaim money for mis-sold investments. There are benefits to be contracting a specialist to make the claims on your behalf. You have to ensure that they are duly registered.
Contact us for a free case review
Did you know you could be entitled to up to £350,000 compensation if you were mis-sold a pension? Well, now you know. You may also wish to know that about a third of UK pensions have been mis-sold. So, if you think yours may be one of them, do not hesitate to contact our no win, no fee solicitors. We’ll review your case at zero costs and let you know if you’re eligible or not. Call us at 0800 060 8855 or check your eligibility right away by answering a few simple questions online.