Pension holders hit by fees on worthless pension pots

Unexpected annual fees could be hitting your pocket for many years to come

Advertisement feature: The Claims Bureau says people’s pensions may be hit by a second penalty

Thousands of people who lost money through transferring their work-based pensions into bogus or poorly reforming schemes, may be about to be hit again by bills and threats of legal action for unpaid administration fees on those empty pension pots.

Since 2006, hundreds of thousands of people have been offered huge returns for investing their pensions into high-risk schemes that failed.

These included airport car parks, property investments, crypto currency and other spurious “get rich quick offerings”. In many cases, these should never have been sold to the public and the Financial Services Compensation Scheme (FSCS) stepped in and awarded millions of pounds in compensation. This should have been the end of the nightmare. But for many it wasn’t.

Michael Coyne, from the Claims Bureau Limited, explains further: “When the compensation was paid the clients believed that the matter was concluded.

Unfortunately, when they originally signed up for the pension transfer, they would have entered a separate contact with a Pension Administrator, (who was not involved in the mis-selling), to administer the scheme. Legally their work continues, which is paid for by an annual fee ranging from £250 to £1000 regardless whether the pension was performing well, completely failed or compensation had been paid out. These fees continue every year in the future until the pension is closed”.

To make matters worse, two of the largest pension companies have themselves collapsed and in one case, the liquidator has been sending out demands for current and unpaid fees. For some, these go back years and have resulted in several thousand pounds being demanded from people who have already lost their life savings to a pension scam.

And even if they pay the outstanding amount now, there will be another demand next year.

If you find yourself in this situation you will not be alone. Thousands of investors find themselves being chased for fees for empty pension “wrappers” and don’t know where to turn to for help.

Coyne added: “Two years ago a client of ours won her case to have her pension, and all future fees cancelled. Following on from this we started offering all our clients a route to closing their pensions.”

Help from Claims Bureau

Today, working with a specialised law firm we now offer a service to close pension contracts to stop future fees and remove you from any future contractual obligations.

A quick conversation with one of our experienced advisors will explain the process and answer any questions that you may have.

Put an end to your pension misery and call today on 01903 868251 or visit www.tcbpension.group/pensionclosure