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1980's Mis-sold Opt out of Serps

Lewbop
Posts: 4 Newbie
Hi
Back in the 80's I opted out of SERPS...had a company phone me recently saying that it was mis-sold and wanting claim my money back at a cost of 4K
Is there an easy way I can do this myself, without the ridiculous cost
Got any template letters..?
Many thanks
Lewbop
Back in the 80's I opted out of SERPS...had a company phone me recently saying that it was mis-sold and wanting claim my money back at a cost of 4K
Is there an easy way I can do this myself, without the ridiculous cost
Got any template letters..?
Many thanks
Lewbop
0
Comments
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Company wasn't Morgan Green by any chance?
The FSA have undertaken research and have reported back that there is no evidence of widespread mis-selling but have identified cases which were sold outside of the typical ages where it is best to contract out. They intend to report later in the year how these cases will be dealt with. It is anticipated that the companies concerned will be told to investigate these cases directly and not wait for complaints to come in. However, we do not know yet.
Also, if you are going to complain. What are you going to complain about? This isnt like endowment vs repayment as both contracting in and contracting contain risks. It isnt a nil risk vs an investment risk issue.
Additionally, there are benefits to contracting out which are not present on contracting in. Such as 25% tax free lump sum available but not if you contract in. Contracting out benefits can be taken between age 55 and 75. Contracting in is taken at state retirement age (whatever that ends up being for you). Investment potential can give better returns (as well as lower). Plus you remain in control of your pension and not the Govt (who have reduced contracted in benefits 3 times since it was introduced but not touched contracted out).
In 1996, everybody that had contracted out was financially better off. In 2001, everyone that had contracted out (and not taken benefits) was worse off (due to stockmarket crash). In 2006, it was about a third better off again as the recovery kicked in.
If you do find a thing you can complain about and your complaint is upheld, you will not get a cash in hand settlement. It will be paid into your pension and you are likely to lose the benefits of contracting out (such as 25% lump sum and early commencement). This bit is still in undecided but companies are in discussion with the FSA on how it should be dealt with.
Claims companies have been doing no win no fee on endowments as it was easier to get an upheld complaint. The fact they want to charge you first with contracting out just indicates that it isnt as likely to win but they still get a fee out of you anyway.
Why do you think you have been mis-sold?I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Lewbop wrote:Hi
Back in the 80's I opted out of SERPS...had a company phone me recently saying that it was mis-sold and wanting claim my money back at a cost of 4K
Is there an easy way I can do this myself, without the ridiculous cost
Ignore these ambulance chasers, and keep an eye on the issue for the time being.The FSA statement has been delayed, but it's looking as though this could be a bigger problem than dunstonh says.
Wait and watch.The Consumers Association is on the case,and the template letters eventually are likely to be found at their site https://www.which.netTrying to keep it simple...0 -
Is there an easy way I can do this myself, without the ridiculous cost
Yes of course - write to whoever advised you to opt out. You will need to be able to tell them why you think you were mis-sold though and what the evidence is.
I opted out in 1990 and I ask myself the question would I give back the lump sum to the Government in exchange for the serps benefits. The answer is no way - as well as losing the fund I'm fairly sure that the S2P will have been quietly phased out by the time I retire in 25 years.
My feeling is that the only people to benefit from this 'scandal' will be the claims companies who manage to extract money from people that can easily be duped.0 -
Lewbop, how did the company happen to get your financial details before calling you so they knew that you were mis-sold? It's largely a scam.
BTW, your house was mis-sold and for 4000 I'll help you to get compensation for the mis-sale. It's a flat? Oh, sorry, let me get the correct record. Ah, now I have yours, yes you were mis-sold your flat. You inherited it? Hmm, they really mis-filed your details. Let me take another look. Ah yes. Your mother ... It was your father? Sorry, yes I meant your father....0 -
What was the name of the company. Cold calling is not supposed to be allowed for this type of business0
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defender_of_the_weak wrote: »What was the name of the company. Cold calling is not supposed to be allowed for this type of business
Do know what I did not take their name because it made me so irrate...I am sure they will probably try again and I will let you know many thanks0 -
Company wasn't Morgan Green by any chance?
The FSA have undertaken research and have reported back that there is no evidence of widespread mis-selling but have identified cases which were sold outside of the typical ages where it is best to contract out. They intend to report later in the year how these cases will be dealt with. It is anticipated that the companies concerned will be told to investigate these cases directly and not wait for complaints to come in. However, we do not know yet.
Also, if you are going to complain. What are you going to complain about? This isnt like endowment vs repayment as both contracting in and contracting contain risks. It isnt a nil risk vs an investment risk issue.
Additionally, there are benefits to contracting out which are not present on contracting in. Such as 25% tax free lump sum available but not if you contract in. Contracting out benefits can be taken between age 55 and 75. Contracting in is taken at state retirement age (whatever that ends up being for you). Investment potential can give better returns (as well as lower). Plus you remain in control of your pension and not the Govt (who have reduced contracted in benefits 3 times since it was introduced but not touched contracted out).
In 1996, everybody that had contracted out was financially better off. In 2001, everyone that had contracted out (and not taken benefits) was worse off (due to stockmarket crash). In 2006, it was about a third better off again as the recovery kicked in.
If you do find a thing you can complain about and your complaint is upheld, you will not get a cash in hand settlement. It will be paid into your pension and you are likely to lose the benefits of contracting out (such as 25% lump sum and early commencement). This bit is still in undecided but companies are in discussion with the FSA on how it should be dealt with.
Claims companies have been doing no win no fee on endowments as it was easier to get an upheld complaint. The fact they want to charge you first with contracting out just indicates that it isnt as likely to win but they still get a fee out of you anyway.
Why do you think you have been mis-sold?
Yes it was Morgan Green....
I was sold the policy through my company who banked with the provider, my company told me it was going to be far more beneficial for me to opt out....rather than stay in, no mention that I might be worse off!
I do not remember seeing anyone from the pension company?
Sorry it was back in the days when I did not think about pensions, I was far more interested in other pursuits0 -
defender_of_the_weak wrote: »What was the name of the company. Cold calling is not supposed to be allowed for this type of business
Morgan Green..0 -
Morgan Green are dodgy as hell. There are some old threads on here giving examples.
Contracting out is not a mis-sale. Not getting full disclosure and risk warnings is a mis-sale. Morgan Green are phoning people up and saying that contracting out is the mis-sale and they WILL get compensation if you pay a fee. They say this before knowing any of the facts.
I have had two of my clients called by them and I know a few other IFAs that have had the same. In both my cases, they were trying to get the money before they knew the facts. One of the clients had a contracted out occupational scheme (so no choice but to contract out) and they were telling them that it was a mis-sale.
Morgan Green are only interested in that up front money they take from you. Avoid at all cost.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
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