How long do you have to claim against a mis sold pension?

Are you concerned that you have a mis sold pension? There are many people who might be in this situation. But there is hope, there are ways that you can claim compensation to get back the money so you can invest it with a more reputable financial service or save in it an account.

To make a claim for compensation against the IFA that oversaw the investment, or is the provider of the SIPP, there are several steps you must follow.

How long do you have to make a claim?

Of course, time is of the essence. Generally speaking, you have about six years from the time that you took out the SIPP or from the date that the pension was transferred. If this time has passed, then there still might be a chance to claim compensation as you’re allowed to claim to the Financial Ombudsman Service (FOS) for up to three years after you’ve realised that you’ve got a reason to complain or could have known of an issue.

While this might seem like a long time, this can quickly disappear. Many people lose out on compensation, which can include interest on the value of compensation that you missed out on due to the mis sold pension.

A lengthy process

You should also remember that it can take a while for your claim to be resolved. The first instance you should have is for you to raise a complaint with the business that mis sold you a pension or SIPP. If they don’t resolve the complaint within thirteen weeks, you can then take up the case with the FOS.

The FOS is a free service to use and can look into the matter on your behalf. Then they might instruct the business to pay you compensation, including any interest on the money that could have been invested elsewhere.

What if the adviser is now in default?

For one reason or another, some of those who could have mis sold you a pension are no longer trading. That doesn’t mean that you can’t still claim compensation. There is the Financial Services Compensation Scheme (FSCS).

However, there are still time limits in place on how long you have to make a compensation claim if you realise that you have a mis sold pension.

One way to ensure that you’re within the time period is to not process the claim yourself. Instead, instruct a specialist compensation team to look into the matter for you. They can instantly tell you if there is cause for a complaint and process the claim to ensure it is done before time has run out.

Many specialist firms will also work on a no-win, no fee basis. So, there is no reason not to contact a company if you think that you’ve got a mis sold pension.

How to tell you were mis-sold a pension and what to do?

Pension mis-selling is a scandal that has seen many individuals who have earned their right to a peaceful retirement shattered by malicious scammers.

A victim of one of these scams, Jennifer Ringstead from the Vale of Glamorgan, spoke out about how she had been tricked, along with her husband, into parting with more than £50,000 worth of their pension money. According to Mrs Ringstead, the caller who sold them on the deal was very persuasive and had all the right answers to her questions. What made the deception even more damaging was that Mrs Ringstead and her husband already had overstretched finances and were now forced to start saving again.

To prevent scams from taking place, below we highlight potential methods of pension mis-selling and how you can possibly avoid falling into the same trap…

Cold calling

If you have been contacted out of the blue, immediately be on your guard. Some scammers are savvy enough to have your contact details, but not your financial ones. They hope to win those over later.

Holding back on information

The individual or company selling you the pension might neglect to outline specific terms and conditions. These plans involve a lot of grey areas that are open to interpretation. When picking up a plan, be specific and press the provider for details. If they are hesitant to provide said details, that’s an obvious red flag.

Asked to transfer from a current workplace scheme

You should not have to worry about transferring funds from your workplace SIPP into a different scheme. In the world of financial advice, this is considered poor advice and hinders your current investment.

If you think you’ve been sold a bad SIPP, these are the things you need to do.

React quickly

It is a general rule of thumb that if you are going to act on getting your money back, you should do so within six years from the time the last salary pension occurred. The sooner you speak up on any SIPP claims or QROP transfers, the greater the chances of getting your money back.

Make a claim

There are several bodies you can contact with your claim, the ombudsman, the Pension Advisory Service, or even the Pension Protection Fund. But your biggest priority should be the scheme provider. Once you have located the scheme provider, you can make the necessary annuity claims on the wrong final salary pension transfer.

If you feel you have been mis sold SIPP or have any other questions about your pension, contact Pension Justice now.