Mortgage your Pension is this possible

Elstree20

Hi

I was speaking to a friend recently who was over the moon as she was going to receive over £200 000.00 by mortgaging her pension policies. However when I pressed further it all sounded like a complete scam and so wondered if anybody knows a bit more about this. The details ( as far as I have been told )are as follows.

It is a Euro pension scheme and is subject to 100 000 people joining. Apparently you buy( but you dont pay any money) a policy which in turn is sold to a bank(mortgaged?). The money is then paid offshore and you are sent a debit card. In order for a bank account to be set up you need to send passport details and proof of address but no money?? She only "bought" the policy 6 months ago and it will pay out within the next month or so?? ( assuming 100000 people join!) . There is apparently a special website for all people who are involved but she would not tell me where it is.

I must admit that it all sounds like some sort of pyramid scheme and have said as much. I have also said that if it is true then please sign me up:D . as a £200K return in 3 months is somewhat excellent!!!. I am concerned that the next step would be "please just pay £100 in admin fee's etc etc"!!

Am I right in assuming this is all a scam ??

michael19_2

as the old saying goes "if it sounds too good to be true...."

Elstree20

Yes I agree I have been doing a bit of surfing since posting and found numerous references to this and it is most definately a scam

dunstonh

I was speaking to a friend recently who was over the moon as she was going to receive over £200 000.00 by mortgaging her pension policies

You cannot mortgage a pension.

Am I right in assuming this is all a scam ??

In the way and terms presented then yes. However, options exist where you can access funds in different ways at different ages but not in the way you have mentioned. It is possible that the reason its offshore is because that would make it a non-regulated transaction (meaning no protection from FSA/FOS/FSCS). It would allow dodgy individuals to do this with no fear of action from the FSA.

Elstree20

Thanks I thought so,

It all sounded too good to be true particulary as she had only taken out the policies a couple of months ago. I have since also found out that it only costs 30 Euros to join this "once in a lifetime" oppotunity and will pay out once they get 100 000 members . Apparently they are at 72 000 !

Unfortunately it seems that my friend bought 6 of these policies at 30 euros a go. So while not huge sums is still lost money! Apparently she would get 200 euros for recommending a friend (me!) but of course only once the magic 100 000 number is reached.

LUIGI_HARKIN

Why are Cilla Black and Michael Parkinson advertising for AXA `s SUN LIFE over 50 Plan can anyone stop them I mean AXA SUN-LIFE . The Plan is A SCUM OF MEGA magnitude and that goes for June Whitfield too .

LUIGI_HARKIN

Why are Cilla Black and Michael Parkinson advertising for AXA `s SUN LIFE over 50 Plan can anyone stop them I mean AXA SUN-LIFE . The Plan is A SCUM OF MEGA magnitude and that goes for June Whitfield too .

dunstonh

LUIGI_HARKIN wrote: »

Why are Cilla Black and Michael Parkinson advertising for AXA `s SUN LIFE over 50 Plan can anyone stop them I mean AXA SUN-LIFE . The Plan is A SCUM OF MEGA magnitude and that goes for June Whitfield too .

They are rubbish but they are life insurance plans (not life assurance in case someone picks up on my use of the term as they have restrictions). They are not pensions and they have nothing to do with this thread subject.

Debt_Free_Chick

Elstree20 wrote: »

Thanks I thought so,

It all sounded too good to be true particulary as she had only taken out the policies a couple of months ago. I have since also found out that it only costs 30 Euros to join this "once in a lifetime" oppotunity and will pay out once they get 100 000 members . Apparently they are at 72 000 !

Unfortunately it seems that my friend bought 6 of these policies at 30 euros a go. So while not huge sums is still lost money! Apparently she would get 200 euros for recommending a friend (me!) but of course only once the magic 100 000 number is reached.

This has all the markings of an unregulated scheme so don't be surprised if she never sees a penny and if the company disappears without a trace.

You absolutely cannot mortgage a proper UK pension. And the reference to "an offshore account" suggests that the money is now is in the Cayman Islands or somewhere else not governed by the FSA.