Pension scams are certainly not a new thing, but in recent years they have been on the rise.
Your pension fund is an integral part of your future, so it’s important that you are taking the proper steps to protect it.
In this blog, we will go through some of the important things you should know about mis-sold pensions.
What is pension mis-selling?
Pension mis-selling is when an authorised and regulated financial advisor recommends a product that isn’t suitable for you, or it is sold without you being given proper explanation on how it works and the risks that come with it.
Unfortunately for many pension holders, this bad advice can be quite common, leading you to lose your money.
When it comes to pension mis-selling, this can include being recommended to transfer out of a defined benefit pension, or to invest your pension funds into a high-risk scheme.
When making any decision regarding your future, it is important that you get financial advice from a reputable advisor, and double check from different sources.
What is a QROPS?
Qualifying Recognised Overseas Pension Schemes (QROPS) are overseas pension schemes, originally introduced in 2006, for UK residents who wish to move abroad. For an overseas registered pension scheme to be eligible as a QROPS scheme, it must adhere to the requirements of the HMRC.
All QROPS need to adhere to the standards of the HM Revenue and Customs (HMRC) and any schemes that don’t meet the standards will be deemed illegal. Some schemes that were originally allowed by the HMRC can later be declared ineligible, and your pension could be at great risk.
The following are some of the risks of an illegal QROPS fund;
- Unauthorised payments and pension transfers are subject to be taxed at 55%
- Transfers are subject to large commissions
- You lose the original benefits from the original UK pension fund
How do I know if I have been mis-sold?
It may be a bit difficult to figure out whether you have actually been mis-sold a pension scheme. An investment not working does not automatically mean you were mis-sold, but in certain circumstances you are eligible to claim financial compensation.
Here are the common signs of mis-sold QROPS;
- The terms and conditions were not properly explained to you
- You were not informed of the risks involved
- Your personal circumstances were not taken into consideration
- You were pressured to consider high-risk investments
- You were told it was mandatory to transfer your pension
- You were advised to transfer all of your pension into a QROPS
If you believe you have been mis-sold QROPS, then you should consider making a claim to save your pension funds.
Is there a time limit to claim?
In order to get the best chance of a successful claim, you should try and lodge your claim as soon as you are aware of the mis-sold product or service.
You may take some time to gather the relevant paperwork and information.
If you are unsure about whether you are still eligible to claim, you can always contact the team to discuss.
Who can you claim against?
You can claim against the individual or the financial firm who mis-sold you the pension. When you make a claim with us, we can discuss the best option for your personal circumstances.
How can I claim compensation for my mis-sold pension?
If you’ve been a victim of a mis-sold pension plan such as QROPS, it’s a good idea to make a claim and try and get your money back.
You can try and make a claim on your own, but this can be a very complicated and involved process. If you feel you have the time, skills and experience to handle your own claim, then you may choose to handle it on your own.
Another way is to hire a claims management company, such as RTR Claims. We have the experience and skills to advocate on your behalf, and will put in the work for you.
How does the claims process work?
We aim to make your life easier by processing your claim for you.
Our process looks like this;
- We will assess your situation and see if you have a claim by looking through your paperwork
- We will speak to the relevant parties on your behalf
- We analyse the information received and write up your letter of claim
- We will do all the chasing until we get a response
- We will keep you updated at every step of the claim process
- We work tirelessly to win, but in the event that it is a no-win situation we close it off and explain everything to you
- We work with you and the 3rd part to get the best settlement offer available
- We discuss the offer with you, and once you are happy, we will accept the claim on your behalf
- Once we win, you get paid!
We work on a No Win, No Fee basis, meaning you only have to pay us if we successfully win your money back.
If you’re interested in making a claim, contact us here.