Ban on nuisance calls about pensions comes into force
Posted on Jan 15, 2019
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According to a recent article on the BBC website a ban on nuisance calls about pensions has now come into force but people are still being urged to be on their guard.
Cold-calling has been used by fraudsters trying to steal life savings or persuade people to invest in high-risk schemes. In fact, some 10.9 million unsolicited pension calls and messages are made a year, according to Citizens Advice. Any firm found flouting the rules now faces a fine of up to £500,000, but experts suggest fraudsters may ignore the ban.
John Glen, Economic Secretary to the Treasury, said: "Pension scammers are the lowest of the low. They rob savers of their hard-earned retirement and devastate lives. We know that cold-calling is the pension scammers' main tactic, which is why we've made them illegal."
The Government has faced criticism over the time taken to introduce the ban, which was first announced nearly two years ago, although restrictions on unsolicited texts and emails about pensions have already been put in place.
Cold calling has led to many people at or near retirement falling victim to fraud and being scammed by criminals out of millions of pounds.
With more and more in the press recently about a UK pension funding crisis, people are seemingly being enticed by something which offers a high rate of return in schemes which never materialise or lead to losses. In fact, research by the City regulator, the Financial Conduct Authority (FCA), found that pension scam victims lose an average of £91,000 each.
The majority of these scams are unregulated investments that often sound too good to be true – which they generally are!
Even if you think that you won’t fall victim to a scam, it’s still worth reading these five tips from The Pensions Advisory Service. If you’re a client of The Goodman Partnership, you’ll have already seen the full document but we’d certainly recommend giving it another read.
1 If you think you’ve been scammed – act immediately.
We’d suggest you give us a call if you’re a client, as we can potentially step in to stop a transfer that hasn’t taken place yet. Then call Action Fraud on 0300 123 2040 to report it.
2 Cold called about your pension? Hang up!
Unsolicited phone calls, text or emails about your pension are nearly always scams.
3 ‘Deals’ to look out for.
Beware of unregulated investments offering ‘guaranteed returns’ and don’t be rushed into a decision, even if it means turning down an ‘amazing deal’.
4 Using an adviser? Make sure they’re registered with the FCA.
At The Goodman Partnership we are registered with the FCA and have other accreditations too, which you can view on our website.
5 Don’t let a friend talk you into an investment – check everything yourself.
Do your homework, even if you consider yourself or your friend to be financially savvy.
For more information about planning for your retirement or to receive a copy of this full document from The Pensions Advisory Service, give us a call on: 01892 500600.