I am in receipt of a private pension can it be reduced my provider is doing just that
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I have been getting a private pension since 2006 as advised I shopped around to get the best provider and signed the pension statement.
4 years later I have just received a letter saying they have made a mistake with the figures and will be reducing my pension by £1000 pa they also want the money back.
So any expert advice would be appreciated
Answers (2)
Hi,
Was the amount you were due to get written into the contract? If so, have they been paying more than was stated on the contract?
If there was payment above the agreed amount, they can legally reclaim the money (like a company overpaying a salary one month). If the amount paid was as stated in the contract, then it's a rather different matter as they are obliged to uphold their contractual obligations.
I'd check the details on the agreement, get in contact with the provider and also go to the Citizens Advice Bureau. If the provider still intends to reduce your payments, lodge a complaint with the provider and if it's not upheld, go to the Financial Ombudsman.
If the Ombudsman doesn't uphold your case, you could also raise it with Which / the Consumer Association, post it on multiple public forums and write to the newspapers as financial firms hate this kind of negative publicity and your provider could be shamed into not carrying on with this action.
There was a letter about this in the Daily Mail recently. I'm fairly sure that it said that a layperson cannot be expected to know precisely how much they will be paid and that is why we have professionals. Therefore you signed in good faith. £1000p.a. is not an error of any great magnitude that you could be expected to notice. Therefore they cannot demand that you pay back the amounts already paid, and have probably spent, but I'm not sure that you can hold onto the amount in future. Certainly one to take specialist advice on and don't give in without a fight. Good luck.
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Many thanks for this answer.
They have admitted it is their mistake but want all the money back.
I have lodged a complaint stating that I expected the figure to be accurate as it is such an important document. The fact that you are tied in once signed for the rest of your life and also it affects my wifes pension if I die.
This really has come as a shocker, I had intended to do as you suggest and warn as many people as possible about this sort of practice and give them the worst possible press
Wow, so the error was made on the pension contract that was signed? I don't see how they have a leg to stand on in that case!
I reckon the Ombudsman will have to rule in your favour if it's in the contract! Make sure to also claim for all expenses (e.g. postage and packing) you make in relation to the matter.
Also, if the provider does stop paying you or reclaims any money and the Ombudsman then rules in your favour, claim back any money taken or witheld from you and for the lost interest you would have made on those amounts, and for repayment of any overdraft or credit card interest and charges should the provider's reduction in payments result in you needing credit.
Heck, I'd be tempted to claim for emotional distress too!