Opting out of Serps mis sale, again!

Cracklin_Rosie

I was contacted by a company last night, Day Cooper Adams LTD who said I may be due for compensation!

I opted out of SERPS in 1991 at the age of 21 and am still contracted out now to Windsor Life.

I was told that I would be due around £12,500 but possibly £25,000.

They ran through a number of questions and told me I was definately mis sold.

Then they asked for £587, which was a refundable deposit and then 12% of my final amount which I would get in the form of a cheque.

I did a little research of my own and am very sceptical.

I have also been in touch with MKFP who have asked me for no money at all.

Would I be right in saying that I was probably not mis sold and am due b***** all??

Fortunately I did not come up the Tay on a tea biscuit and it'll take a little more persuading for me to part with £587!

Paul_Herring

They ran through a number of questions and told me I was definately mis sold.

From the minimal details you've given so far, I think they're lying.

Would I be right in saying that I was probably not mis sold and am due b***** all??

I reckon so.

What normally happens with these companies is you pay them a non-refundable fee, and any compensation you receive must be paid into your pension fund. Any percentage (you cite 12%) the company claim has to be paid out of your own pocket - you cannot pay them from the compensation. So if you did get £25,000, that would go directly to your pension fund, and you'd have to find a spare £3000 to pay them from elsewhere.

Regardless of all that, I believe that you're too young to even succeed in a mis-sold claim.

dunstonh

age 21 is a perfect age to be contracting out. It only becomes a mis-sale after age 45. (note pivotal age did vary over the years but it was always in the 40s).

They ran through a number of questions and told me I was definately mis sold.

I assume you have read the other threads on here on this subject and have seen the links to the FSA investigation into contracting out which highlights that only 1.5% of those contracted out were potentially mis-sold.

I would love to know what questions they asked you to decide you were mis-sold as you are in the perfect age range. Its pre 96 when rebates were still high (in 1996, the SIB found that everyone that had contracted out to that point was financially better off). The benefits of contracting out allow you to take the pension earlier than state retirement age and have a 25% tax free lump sum. There is investment risk of course but then contracting in carries risk as well as the Govt could pull the second state pension or reduce benefits. Benefits have already been reduced 3 times retrospectively for those contracted in without any impact on those contracted out.

So, what was it that made this cold calling, rule breaching claims company decide you were mis-sold?

It should also be noted that the claims company is not authorised to give advice by the FSA and the person phoning almost certainly has no professional qualifications. So, how are they able to tell you that you were mis-sold?

Cracklin_Rosie

They said that I had to answer at least 3 questions out of 21 correctly to qualify.

Simple questions like "Did they warn you there may be a shortfall in your pension?" and other general risk associated questions.

It was all a long time ago and to be honest at the age of 21 I didn't really understand or care! who thinks about being 60 when they're 21 (unless you're and accountant?!!)

I have read the threads on ehre and get the general impession that these companies are not highlythought of!!!!!

I will certainly not be parting with £587.

They also definately told me I'd be getting the cash, because lets face it, did I want to put in another pension!!!!

They also said the reason they charged people up front was because they had not done this previously, prepared all the paperwork for the customers signature and then never had the paperwork back!! The scammer being scammed???!!!

Should I continue to Opt out or should I rejoin is now the question????

dunstonh

Simple questions like "Did they warn you there may be a shortfall in your pension?" and other general risk associated questions.

That is certainly an important issue nowadays but the FSA have said that any complaints should be reviewed based on the rules that were in place at the time and in the early years of contracting out it really was a no brainer.

I have read the threads on ehre and get the general impession that these companies are not highlythought of!!!!!

DOTW (a poster here) owns a claims company and he slags of these cold calling cowboys. That should tell you something.

They also said the reason they charged people up front was because they had not done this previously, prepared all the paperwork for the customers signature and then never had the paperwork back!! The scammer being scammed???!!!

The real reason is that there is likely success rate of 1.5%. So, by charging you a non refundable fee, that is where they make their money. One telephonist can phone 200 people in a week. Say 10 agree to it, thats £5870 earned for them to send out a standard template letter than takes them 30 seconds. a few months later the IFA or insurance company then rejects the complaint because you were under the age of 45. The claims company will go to the FOS because the cowboy firms always do (something higlighted in the Hunt report this week which has recommended that these dodgy claims companies pay for these complaints as a way to stop irresponsible use of the FOS). Then you wait 6-12 months for the FOS to agree with the IFA or insurance company. You are out of pocket by £587 and the dodgy cowboy claims company has wasted a couple of stamps, a bit of paper and shared the £587 with the person who did the phone call.

Should I continue to Opt out or should I rejoin is now the question????

Take a look at the opting out of serps sticky at the top of the board. Read it backwards a few pages to get an idea of the pros and cons and see what you think.

Paul_Herring

Cracklin_Rosie wrote: »

They also definately told me I'd be getting the cash, because lets face it, did I want to put in another pension!!!!

This, along with the claim that their fee is 'refundable,' indicates they were downright lying to you.

Lurking_Lawyer

Off at a bit of a tangent here (sorry!) but how do I find out whether I'm contracted out or not?

I have a very vague recollection of contracting out when I first started work and paying into a pension scheme, 12-13 years ago. The advice at the time was that for someone of my age (23 or so, at the time), that was the best thing to do.

I assume that I remain contracted out unless I actively contract back in again? At age 35, I'm not sure what the advice is thesedays in terms of contracting out/in. Don't suppose anyone can point me to somewhere that might shed some light....?

EDIT: Just seen in one of the posts above that there's a sticky thread about this. I shall go and explore it now!

autismmum

wow, me too, allied dunbar did me and thats all i know, good luck.

defender_of_the_weak

This is a relatively new name to me but as Dunston says this looks like another cowboy operation.

Although he and I differ on the actual stats my sentiments are the same as his. Any reputable company would charge if they succeed, not scam you up front in a cold call