Mis sold pensions UK scandals are increasing in the country. And because of the underperforming pension schemes, the duped savers could pocket a £50,000 windfall.
Experts have concerns that the mammoth Self Invested Personal Pensions (SIPP) scandal engulfing England and Wales could overtake the current wave of PPI claims.
Badly performing SIPPs amounting to a colossal of £10 billion are believed to have been mis-sold. Hundreds of thousands of Brits who bought the schemes have fallen victim to the unscrupulous financial advice.
Should you be among these unfortunate victims, you are urged to check if you can reclaim large portions of your lost money. Luckily, the government has set aside £120 million in a special fund to compensate so far those who have lost cash.
A compensation sum of up to £50,000 is available at the moment from the large fund managed by The Financial Service Compensation Scheme. This figure is set to increase by 75% in the next nine months to a maximum of £85,000 as claims grow.
Zoe Pearson, a pension expert, and other industry figures, nevertheless, warn that the true cost of mis-sold pensions is almost £10 billion and will sweep the UK just like the PPI claims, which currently have gripped the country over the past few years.
Talking to Mirror Online, Miss Pearson who leads all female team of claim specialists in the country, Pension Claim Consulting Ltd, said that people who do not know they have a mis-sold SIPP are thousands upon thousands.
She explained it is hard to know what a mis-sale is unless one knows what they are looking for. Also, many people who realise they have been mis-sold to tend to be too embarrassed to take action. According to Zoe, one should understand that the financial services industry has firm rules and so mis sold pensions UK schemes should be pursued.
With simple calculations, Miss Pearson provides an idea of the true scale of the scandal. For private pensions, the average compensation for a mis-selling is around £25,000 while that of final salary pensions is £50,000. She predicts that the total figure of compensating SIPPs mis-selling will be around £10 billion. It takes one to the main question. are the SIPPs mis-sales going to take the place of PPI?
Zoe recommends an investigation by the government to unearth the true amount since there might be an underestimation in the pensions schemes people have.
Frank Field, the labour MP attacked the SIPP conmen and vowed to streamline the industry as experts reveal the true figure of mis-selling. SIPP mis-sales are growing at an unexpected rate and the true loss of mis-selling will amount into billions as the number of victims soars.
Despite all these, the Financial Ombudsman are permitted to increase their compensation and can award further up to a maximum of £150,000 for many cases.