Mis-selling is a small phrase that has left a huge impact on the financial services industry over recent years. It has left reputations of trusted brands in tatters and has found itself being the core of major government debates on how to protect consumers from such scandals in the future.
At Expert Pension Claims we have seen a huge rise in people seeking compensation for mis-sold pensions so for our latest blog post we wanted to take a quick look at where mis-selling stems from and why did it ever happen.
Why Were Pensions Mis-Sold?
It seems like a straight forward question to answer; individuals and corporations are offered huge incentives to make a “sale” so they go about doing this aggressively.
Just like PPI mis-selling, pensions became a culture and many who were involved may well have been aware that they were making poor recommendations or mis-selling pension products and services.
Why Are So Many People Affected by Pension Mis-Selling?
Financial services is now one of the largest if not the largest industry in the UK with a range of products and services on offer to the general public and businesses. So when a culture is being built in an industry like pensions services the potential reach is huge.
Were the Pension Products Designed to De-Value Customers Investments?
Although regulation and product design has come under huge scrutiny from regulatory bodies in the wake of the miss selling scandal, these products were not designed to de-value your pension pot – but they may not have been designed with you in mind.
Like any new product or service it is designed with a target audience in mind and financial services is no different. This is where it tends to go wrong as a product such as a pension transfer or contracting out of SERPS is designed for a certain target audience that could potentially benefit from it – but then it might be mis-sold to people outside of this target audience.
Add huge incentives and lucrative deals and a miss selling culture is quickly born.
Culture is a word that you may have seen associated recently with large banks and pension providers. This is because they are trying to change the culture of their staff and their organizations in a bid to rebuild their reputation with the British public.
If you believe you have been a victim of a mis-sold pension then you can contact us for a free no obligation consultation on 0808 278 9424. We are waiting to help you secure the compensation that you deserve.