Although PPI claims have been dominating personal finance news in recent years, it looks like pension mis selling is likely to be the next scandal to hit the UK. Fears over pension mis selling have been growing, as many have found that their Self Invested Personal Pensions (Sipps) have performed poorly, particularly when compared to promised rewards. Thousands of people have found themselves with pensions worth less as a result. Now, a special £120 million fund has been set up to ensure that anyone who has been a victim of pension mis selling can get compensation.
The cost of pension mis selling could be billions
Currently, it’s possible to claim a maximum of £50,000 in compensation for pension mis selling. However, that figure is set to rise to £85,000 in April of next year. Some special cases may even attract compensation of £150,000. The total number of people who may be affected by pension mis selling is still thought to be significantly underestimated. In fact, experts believe that many people are completely unaware that they have been mis sold a pension and could be due substantial compensation as a result. So, the true cost of pension mis selling could be billions.
Getting compensation for pension mis selling
If you believe that you have been sold an unsuitable product – such as a pension – then you are entitled to seek compensation. There are a number of different elements that are involved in pension mis selling, including:
– Being sold a product that simply isn’t right for you
– Not being properly informed about the risks of the products/investments that you have been offered
– Being given unsuitable advice about financial products such as Sipps
– Being put under pressure to make a certain choice or accept a specific option
– The small print has not been properly explained to you
It’s important to note that you don’t have to suffer financial loss in order to be eligible for pension mis selling compensation. If a product simply didn’t perform very well then you may struggle to make a successful claim. However, if you have ended up with a product that is not right for your needs and circumstances, or the investment you’re making in reality is much riskier than you thought it was then you may have a firm basis for making a claim. And that claim could be successful even if you haven’t actually lost any money.
Getting compensation for pension mis selling
You can make a claim for pension mis selling today. If you believe that you have been given bad advice, or are the victim of an unscrupulous financial advisor who took advantage of your lack of knowledge, you could make a successful claim. Depending on your circumstances, any losses involved, as well as the advice you were given and the consequences of that advice, you could be entitled to recover significant compensation.