EuropeSouth AsiaAsia PacificAmericasMiddle EastAfricaBBC HomepageWorld ServiceEducation



Front Page

World

UK

UK Politics

Business

Sci/Tech

Health

Education

Sport

Entertainment

Talking Point
On Air
Feedback
Low Graphics
Help

Wednesday, March 3, 1999 Published at 14:52 GMT


Business: Your Money

Pension probe sparks 71,000 calls

Members of occupational schemes were especially vulnerable

The Financial Services Authority is receiving 10,000 calls every week in response to its high profile campaign to raise awareness about pensions mis-selling.

The FSA launched a �10m advertising blitz in January in the national press, radio and television to highlight the second phase of the personal pension mis-selling review.


[ image: The FSA says there has been a strong response to its campaign]
The FSA says there has been a strong response to its campaign
A help-line set up seven weeks ago for consumers who believe they may have been mis-sold a pension has already received 71,000 calls.

The publicity is designed to run until the end of April to raise awareness amongst younger investors, typically between 20 and 50 years old, under the theme of "R U Owed?".

These investors could be entitled to up to �4,000 in compensation.

R U Owed?

They will need to take action if they think they have been mis-sold a pension between April 1988 and June 1994.

The mis-selling scandal occurred after the industry persuaded individuals to leave their company pension schemes to take out a personal pension plan instead.

Salesmen could often net great personal rewards in commission payments for selling the policies, which often left the consumer worse off.

Christine Farnish, FSA's consumer relations director said: "The helpline has proved a great success. Some consumers have found it reassuring to talk their concerns through with someone who is knowledgeable and independent.

"Many people who may be affected will now have received an 'R U Owed?' letter.


[ image: Investors could be entitled to thousands of pounds worth of compensation]
Investors could be entitled to thousands of pounds worth of compensation
"To those who have received a letter and have yet to do anything about it our message is: read the information carefully and, if you want your case reviewed, fill in the questionnaire as best you can and send it back to your firm."

Do I qualify?

Typical calls to the FSA helpline are from consumers who want more information about the review or are unsure whether they were affected by mis-selling.

There are also a number of callers who have already received a questionnaire from pension companies and want help with its completion.

Pension companies are also obliged to send out questionnaires to their clients to review whether anyone is entitled to compensation.

The first phase of the review, to compensate workers in or close to retirement, has now been completed.

It led to compensation awards to 370,000 investors totalling more than �2.3bn.

Pension companies have also been fined millions for not reviewing their case loads fast enough.





Advanced options | Search tips




Back to top | BBC News Home | BBC Homepage |


Your Money Contents


Relevant Stories

02 Mar 99�|�Your Money
Mis-selling fears over endowment mortgages

25 Feb 99�|�Your Money
Isa mis-selling fear

05 Jan 99�|�Your Money
Watchdog focus on young pension victims

15 Dec 98�|�Your Money
Pensions reform: how it affects you





Internet Links


Financial Services Authority


The BBC is not responsible for the content of external internet sites.




In this section

The growing threat of internet fraud

Online share dealing triples

Maxwell pledge to pensioners

Insolvent firms to get breathing space

Building society offers �1,000 windfalls

Financial services plan for millions

Why banks love online customers

Help for the 'financially excluded'

Abbey, Halifax raise mortgage rates

Banks accused of sharp practice

Endowment holders 'may win payouts'





Trending Now