Pension Liberation Scam

[CliveH]

You may have noticed in the news of late that the Police have raided Pension Liberation Companies that offer the ability to access your pension earlier than the stated age 55 and also circumvent the 25% only PCLS (Pension Commencement Lump Sum) or Tax Free Cash as it used to be known.

 

The scammers never told people that to do so incurred a 55% tax recovery charge!

 

So now most of the good providers are putting a hold on any transfer requests they feel might be as a result of one of these scams.

 

JUST FOR HE!!! – THIS IS AN ARTICLE FROM ONE OF THE PINKS – YIPPEE!

 

IT IS BEHIND A PAYWALL SO A CUT’N’PASTE JOB (I KNOW HE LIKES THOSE AS WELL !!)

 

 

Pension providers block transfers in fight against unlocking

 

Providers are stepping up their efforts to protect consumers in the battle against suspected pension liberation schemes.

 

By Kevin White | Published May 15, 2013 |

 

Standard Life, LV= and Zurich have all spoken out against the practice this week, revealing their own initiatives to drive out pension schemes that encourage consumers to unlock their pensions early but without informing them of the huge tax penalty and exorbitant costs.

 

Philip Brown, head of retirement propositions for LV=, said: “We fully support the action being taken against these people. For several months we have been blocking transfers proactively if we suspect any wrongdoing. We look at whether we have dealt with the pension fund to whom the consumer wishes to transfer, and have had a few tough conversations with customers about the practice.

 

“Our aim is to protect the customer, as what some of these firms are doing will not be legal.

“As a provider, I’d rather apologise for the delay of a transfer than allow customers to lose money. Many of the websites run by these firms look legitimate and most customers will not have the benefit of our experience.”

 

Dave Lowe, head of corporate propositions for Zurich, said: “We support this campaign. We are aware of the increased activity around pensions liberation and we are reviewing our processes and procedures to address this issue.

 

“We are obviously concerned that potentially vulnerable customers might be taken advantage of through these pension liberation schemes and would fully support industry, government and regulatory actions to make it more difficult to establish and run schemes for this purpose.”

.....................................

 

The tax rules on unauthorized pension withdrawels make you eyes water and are available here.

 

http://www.hmrc.gov.uk/manuals/rpsmmanual/RPSM04104000.htm

 

[Dave225]

There is always someone out there who thinks your money is better in their pockets, than yours, and will use any scheming way to get it. Many of them go under pseudonyms such as 'banks' or 'insurance companies' or 'energy companies', 'Governments' or even 'financial advisers'. the common word for all of them is 'crook'.

 

The day to day analogy is they ask you to allow them to bet all your money on the winner of the 2.30 at Kempton for example. You put up the money and if the nag wins they pocket 30%. If the nag loses they deduct 5% of the bet as 'expenses'. They then drive past you as you are thumbing a lift home. There will always only be 1 winner, and it will never be you.