Payment protection insurance (PPI) mis-selling claims may be coming to an end but the firms encouraging people to make claims may be heading to a new field: pension transfers.
That is according to the chief executive of The Pensions Advisory Service (TPAS) Michelle Cracknell (pictured) who said the government guidance body is starting to get calls from people who have received advice to transfer out of their final salary pensions by the people behind PPI claims firms.
‘[We had] one story of a lady who phoned us up and she had an electricity board pension and she was approached by someone to do a transfer,’ Cracknell said. ‘She was going to go ahead with it but she phoned us up to double check.
‘When we said to her “who called you?” She said “he was a really nice man he sorted out my PPI insurance. But someone said to me my Electricity Board pension is worth a lot of money so that is why I thought I should double check.’”
Cracknell was speaking at a meeting today of the All-Party Parliamentary Group on Financial Crime and Scamming.
By next month the government has said the pensions cold calling ban will be in place, however Cracknell suggested the PPI mis-selling claims firms could call people about their pension because they are existing clients.
‘The evidence we have got is they are using other things already. The people who have been selling services to claim back your PPI insurance, is that a cold call or are you an existing client?’
The claims management sector is currently regulated by the Ministry of Justice, however the Financial Conduct Authority (FCA) is taking over regulation of the sector from Spring 2019.
Transfers out of defined benefit pension schemes more than doubled last year, the Financial Times revealed earlier this month.