Mis-sold or mis-managed annuity?

• Were you suffering from a medical condition at the time you purchased your annuity which your financial adviser or pension provider failed to ask questions about?
•  Was there a failure to ask you about your lifestyle habits, such as smoking and drinking patterns, before you took your annuity?
• Did your financial adviser or pension provider fail to inform you that a better deal may be available through an alternative provider?

We are an award-winning team of solicitors who specialise in professional negligence and financial mis-selling claims. We use our many years of experience and knowledge in this area to obtain and scrutinize relevant documents from financial advisers, stockbrokers, CFD providers and other associated entities.  Using our specialist knowledge of the law of contract and negligence we identify any grounds for action. We submit written complaints, detailing every allegation and are successful in most of our cases.

If you have been mis-sold an annuity then the level of income that you receive from your pension may be lower that what you were entitled to. You can look to recover a lump sum of compensation to reflect the level of income that you will potentially lose over the years. The potential amounts that can be claimed are illustrated by the following hypothetical examples;

We offer an absolute and guaranteed No Win, No Fee agreement, it’s that simple. If successful, we take a fee of up to 20% (plus 4% VAT) * Of the award of compensation. If unsuccessful, our clients pay us nothing.

An annuity is one of the most common financial products that can be sold to a person upon their retirement. It involves the retiree using their pension fund to purchase an income amount which will then be paid to them on either a monthly or annual basis for their lifetime.

The level of income provided by an annuity should be based upon the average life expectancy of the person it benefits. There are certain medical conditions and lifestyle choices (for example, smoking) that can shorten average life expectancy. In such cases, the level of income received from an annuity should be of a higher amount to reflect the fact that the income may be paid for an overall shorter number of years compared to other people. This is commonly referred to as an enhanced annuity.

It is therefore of vital importance that any relevant medical conditions and lifestyle choices are fully considered and taken into account by the financial adviser or pension provider when considering annuity provisions. If they fail to do so, you could be sold the wrong type of annuity.

The following conditions and factors should be taken into account when an annuity is purchased;

• Heart conditions
• Diabetes
• High cholesterol
• High blood pressure
• Smoking and drinking patterns
• Cancer history
• and many others

There are also many others, including any conditions where hospital treatment or the taking of routine medication is required.

You could potentially lose thousands in income over the years if such factors are not taken into account, and you may have grounds for a no win, no fee claim as a result. Financial advisers and pension providers typically have indemnity insurance or other adequate funds to cover the cost of such claims.

Here is some more coverage of mis-sold annuities in the press:

• Telegraph: Savers on verge of compensation as regulator examines annuity mis-selling
• Telegraph: Annuity mis-selling scandal: could it be as big as PPI?

It is also the case that different annuity providers will offer different rates of income. It is the right of the retiree to explore the open market to obtain the best rate available before committing to a particular annuity.

Statistics show that annuity income levels can vary by as much 40% and this highlights the importance of obtaining quotes from more than one provider.

In some situations, a financial adviser or pension company will not inform the retiree of their right to explore the open market. They will instead offer only their in-house rate or that of company they are tied to. This can create an impression that there are few or no alternative choices available to the retiree and can lead to retirees missing out on better deals.

If you purchased your annuity directly from your pension provider and were not advised of your right to explore the open market for an alternative quote, you could be receiving significantly less income than what may have otherwise been available. Neglect Assist may be able to help you with a No Win No Fee claim if this applies to you.

What is an annuity?

This is a product where a retiree uses their pension fund to purchase an income amount which will then be paid to them on either a monthly or annual basis for their lifetime.

How can an annuity be mis-sold?

An annuity can potentially be mis-sold if the financial adviser or pension provider failed to ask questions and take into account relevant factors that can affect the level of income received from an annuity. It should be established whether the retiree was suffering from any medical conditions, and lifestyle choices such as smoking and drinking habits should also be taken into account.

It may be that the retiree was entitled to an enhanced annuity, and a failure to provide this in appropriate circumstances could lead to the retiree receiving significantly less income than what they should have.

Has there been any press coverage of mis-sold annuity claims?

Yes. The matter has been reported in the press. Here are some links to relevant articles:

• Telegraph: Savers on verge of compensation as regulator examines annuity mis-selling
• Telegraph: Annuity mis-selling scandal: could it be as big as PPI?

Should I have been given a choice on my annuity provider?

Yes. You should be advised of your option to search the open market for a better rate from an alternative provider. If you were not informed of this right, you may have grounds for a no win, no fee claim as you may have missed out on a better deal elsewhere.

How much am I entitled to?

If you have a mis-sold annuity then the level of income that you receive from your pension may be lower that what you were entitled to. You can look to recover a lump sum of compensation to reflect the level of income that you potentially will lose over the years. Neglect Assist can investigate and advise upon the level of loss suffered and may be able to represent you in a no win, no fee claim.

What do we charge?

We offer an absolute and guaranteed No Win, No Fee agreement, it’s that simple. If successful, we take a fee of up to 20% (plus 4% VAT) * Of the award of compensation. If unsuccessful, our clients pay us nothing.

* We reserve the right to apply a deduction in more complex or higher risk cases of up to 30% plus VAT. Typical examples might be where there are multiple parties to claim against, where time limits for claiming may have passed or new areas of law are tested.

We will still look at this for you. We have taken on and been successful in claims that have been rejected by a surveyor or their insurers.

No, we will be able to do most of the necessary paperwork for you and we can obtain any relevant documents from the surveyor and from any other connected parties on your behalf. You will have to check the details of your claim before it is submitted, but we will assist you with this.

Call us or email us. There is absolutely no obligation to proceed and if you tell us what’s happened, we will briefly explain if we think you have a claim and the procedure for filing a claim and the time limits that apply.