Wave of Annuity Mis-Selling Claims – FCA Warns Pension Providers to Brace Themselves

An annuity is a financial product that guarantees the purchaser an income stream during their retirement in return for a lump-sum premium paid upfront at retirement – usually from the proceeds of a pension.

The importance of getting the best deal possible on an annuity cannot be overstated. Indeed, in many cases the income generated by an annuity will become a primary source of income for the rest of the annuitant’s life.

Given that context, it is beyond disappointing to see that in recent years so many providers in the pension industry have systematically failed their loyal customers by pushing them into purchasing annuities that were both poor value for money and unsuitable for their circumstances.

The FCA Decision

In response to this worrying trend, the financial services watchdog – The Financial Conduct Authority – recently fined the UK’s leading pension annuity provider The Prudential the eye-watering sum of £23,875,000 for the mis-selling of annuity products to existing Prudential pension holders. In particular, the FCA held that The Prudential had failed in two key respects:

1. They failed to notify customers that they could have get a better deal on their annuity through an alternative provider;
2. They failed to make sure that customers with health conditions likely to reduce their overall life expectancy were offered enhanced annuities with higher monthly payments;

This decision is likely to establish a precedent and will serve as a reminder to other providers that the interests of customers must always be put first.

Have you been affected?

It is possible that you may be entitled to compensation which, in many cases, will amount to several thousand pounds.

1. Were you pushed into purchasing an annuity when you retired?
2. Were you told that better value annuities were likely to be available from other providers?
3. Did you have a health condition when you purchased the annuity?

If you have answered yes to the above questions we may be able to assist you in recovering the compensation you are entitled to.

What do you do if you think you have been mis-sold?

Contact Oakwood Solicitors free of charge for an initial consultation to find out if you are entitled to compensation. We have helped many clients over the years to recover thousands of pounds in compensation and may be able to help you too.

How much will it cost you to make a claim?

• We operate under a Conditional Fee Agreement (CFA) more commonly known as a ‘no-win, no-fee’ agreement
• If we fail to secure you a settlement, you will not be charged

Quick Facts

• No-win, no-fee
• Dedicated team of specialists
• Access to a panel of industry-leading experts
• Personal service and excellent reviews
• Financial Advisors available to assist post-settlement

WHAT TO DO NEXT

If you believe or feel you have a claim contact us for a free initial consultation regarding your options by email on enquiries@oakwoodsolicitors.co.uk, or alternatively, call us on 0113 200 9787.