pension backed loan

trickytrev33

help,

I took out a pension backed loan when i retired which seemed legitimate, i was even provided a tax position from a company.
nearly 3 years down the line i have hm revenue and customs sending demands for money.
Ge loans have sent a letter claiming they have a barrister represnting them against customs.
I am so confused, has anyone ever experienced this? knows the company?
Obviously i cant pay the tax demand what steps can i take, Help:(

dunstonh

nearly 3 years down the line i have hm revenue and customs sending demands for money.

3 years does seem to be the sort of delay that occurs between doing it and HMRC catching up.

Ge loans have sent a letter claiming they have a barrister represnting them against customs.
I am so confused, has anyone ever experienced this? knows the company?

Pension loans like this have never been viewed as lawful except by the companies that operated them and most of those were scams. Warnings have been published for many years. Last December, it was tested in court and the High Court ruled them illegal. That is now being appealed but no-one in the industry is expecting the pension loan companies to win (but who knows - the law can surprise you sometimes).

Pension loans to draw funds out were never in the spirit or intention of pension legislation. The loan was designed to be used for the benefit of the pension and clearly be taking the money out you are not helping the pension.

Obviously i cant pay the tax demand what steps can i take

Possibly start to see a debt counsellor and be prepared for HMRC to take action against you. Maybe you should discuss your options with a solcitor with a view to taking action against the company that marketed it to you. As this company is highly unlikely to be regulated by the FSA (and frequently not even based in the UK) you are unlikely to have any consumer protection on that front. However, you should check just in case it was an FSA regulated company.

There is no good news to give you I'm afraid. You did something you shouldnt do. This is exactly the sort of thing that we have been warning people about for years on this board.

trickytrev33

Thanks for your help, ill need to get things moving, not sure of my options, citizens advice tomorrow!! Thanks again

trickytrev33

i have also been hit with a self assessment fine for late filing of my self assessment due to this, can i use the special relief ruling letter about this?

mania112

This thread needs to be stickied as a perfect example of why Pension Backed Loans, whilst not illegal per se, are wrong and never a good idea.

They're only sold by firms who are unregulated and without morals.

anon_reading

Hi,

I am badly in debt at the moment and need £5300 urgently before the end of jan or risk loosing my job. In this case can I use this free my pension fund service provided? I will have around £40k in my pension pot

thanks

Linton

anon_reading wrote: »

Hi,

I am badly in debt at the moment and need £5300 urgently before the end of jan or risk loosing my job. In this case can I use this free my pension fund service provided? I will have around £40k in my pension pot

thanks

If you are under 55 you cannot safely access any money in your pension other than for your support during a terminal illness. For reasons why you should not consider pension loans I suggest you read the top posting in this thread, the "can I cash in my pension" thread at the top of this forum and the FSA's views on the matter here.

dunstonh

anon_reading wrote: »

Hi,

I am badly in debt at the moment and need £5300 urgently before the end of jan or risk loosing my job. In this case can I use this free my pension fund service provided? I will have around £40k in my pension pot

thanks

Even if you used one of the scam companies you would not get it done in time. Plus, of course, the HMRC fine and being required to return the money come later on down the road.

atush

I don't see how owing money can cost you your job? I do think right now your pension is protected from Bankruptcy.

Consult the Debt free board, and the CCS and CAB immediately.

phil.s_3

anon_reading wrote: »

Hi,

I am badly in debt at the moment and need £5300 urgently before the end of jan or risk loosing my job. In this case can I use this free my pension fund service provided? I will have around £40k in my pension pot

thanks

What is your age?

mania112

It isn't a job, it's a pyramid scheme.