Mis-sold pensions have been labelled the “next PPI scandal” — if this is the case, claims software is prepared to help firms start processing these claims.
With the impending PPI deadline approaching, many PPI claims companies will be trying to find another type of claim to focus on. Mis-sold pensions could be a popular choice, with an increase in the number of mis-sold pension claims in the past two years. In 2018, £40 million was paid in compensation to customers for mis-sold pensions. Some claims can result in huge payouts for the consumer — and, in turn, the claims management company working on their behalf.
One of the main ways that pensions were mis-sold was as a result of bad financial advice. The Financial Times reports that since 2015, 19 firms have left the pension transfer market after the Financial Conduct Authority (FCA) took issue with the advice they were giving customers.
In 2017/2018, 4% of all complaints to the Financial Ombudsman (FOS) were about pensions. Although PPI claims are still dominating the FOS, due to the fast-approaching deadline and huge advertising campaign, many pension cases continue to be referred for an outcome.
Any company wishing to switch from PPI to mis-sold pension claims requires capable and versatile claims software.
Types of Mis-Sold Pensions
There are different types of pensions and, therefore, a variety of ways it was mis-sold. Here are some of the most common mis-sold pensions:
- Self Invested Personal Pensions (SIPP) — This type of pension scheme has gained the most attention for its mis-selling. This type of pension could result in a considerable refund for the individuals involved — up to £50,000. It is believed that many consumers were encouraged to move retirement savings into a SIPP.
- Small Self Administered Schemes (SSAS) — Although less frequent than SIPPs, the mis-selling of SSAS has also occurred in recent years. This type of pension is typically used by employees of small businesses.
- Qualifying Recognised Overseas Pension Scheme (QROPS) — This type of pension plan is for those planning to move overseas during retirement. It’s possible that this also could have been mis-sold.
This list is not exhaustive and numerous other types of pensions could have been mis-sold to customers. A claims management company may choose to help customers with one or more of these types of claims.
How Customers Know if They Were Mis-Sold a Pension
All customers who believe they were mis-sold a pension can contact a solicitor or claims management company to help them determine if this was the case, along with the process of making a claim. It’s believed that many financial firms misinformed customers about their pension plan.
Claims Software for Mis-Sold Pensions
One of the reasons PPI claims companies have been so successful is their use of effective claims management software. This software has helped many claims companies to keep an accurate record of all cases, automate processes and streamline workflow.
Claiming about a mis-sold pension will require communication with the customer and financial firm. If necessary, a claims company may also need to refer the case to the FOS. Being able to automate chaser letters and assign incoming mail to a specific case make the process significantly easier.
The best claims software can be adapted for each business and type of claim. If mis-sold pensions are your next business venture, ensure your claims software is designed to work efficiently in this market.
Logican’s claims management software, LogiClaim, is ideal for companies handling mis-sold pensions. Request a free demo to find out how it could improve your workflow.
