Have you ever worked for a tobacco company? Tobacco companies like Imperial Tobacco and British American Tobacco offered their employees excellent defined benefit pension plans. However, some pension holders have been duped into missold salary swaps. Negligent financial advisers misled clients into transferring their secure tobacco company pension plans to inferior schemes. Did this happen to you? If so, you are likely the victim of a missold DB transfer.
Your financial adviser should always err on the side of caution – their job is to assess your financial situation and make good, wise recommendations. However, the Financial Conduct Authority (FCA) has received a number of alarming complaints about missold DB transfer scams.
Independent financial advisers convinced tobacco company pension holders to cash in their pensions for a big cash payout. They took hefty commissions and then advised clients to invest the rest in inferior private pensions. In almost all cases, this is poor advice, but the advisers only made money if they made the switch. They put their own interests ahead of their client’s best interests – did this happen to you?
If you are the victim of a missold DB transfer, you could be eligible for defined pension compensation – read ahead.
In the past, tobacco companies like Imperial Tobacco and British American Tobacco enrolled their employees in final salary pensions, also known as defined-benefit pensions. Rarely offered today, these pensions are regarded as the gold standard. That’s because they continue to pay out for as long as you live – there are no caps on payments.
Defined benefit pensions are pegged to the rate of inflation. When the cost of living rises, so too does your monthly payments, ensuring you can maintain a high standard of living. Unlike private pensions, they do not charge high fees or admin costs.
Negligent financial advisers recommended that clients cash in their tobacco company pensions for a Cash Equivalent Transfer Value’ (CETV). They took a big commission from the CETV, and advised clients to use the rest to invest in a private pension scheme. Private pensions are limited and finite – when the money is gone, it’s gone. You could outlive your pension and end up broke in your old age.
If you were advised to make a transfer from a final salary pension to a CETV and private pension, you were likely mis-sold DB transfer products. The expert Allegiant team can help you file a final salary transfer claim.
Final salary pension transfers only benefit people in very specific circumstances, such as terminal illness. If your financial adviser recommended a tobacco company pension swap, they failed to consider your needs. Thankfully, you can now make a salary swap claim, which will help you recoup some of the money you lost.
To have your prospects assessed by our specialist team, simply fill in our online form.Apply Now
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The Financial Conduct Authority (FCA) has identified ‘serious and ongoing failings’ by both Individual Financial Advisers (IFAs) and Self-Invested Personal Pension Providers. Typically, mis-selling is related to the “wrong” type of investor being given poor or misleading advice as to what investments were relatively safe and right for them. In this summary, we look at What a SIPP is, and how they have been mis-sold, together with the FCA’s review into sector malpractice.Click to Read
Pre complaint investigation and analysis. No paperwork? Don't Worry! We could still help.
Once we've assessed claim prospects, we make a pension complaint to the Ombudsman or FSCS, where appropriate
Pension complaint response received. We'll carefully analyse the response and advise you on how to proceed.
If appropriate resolution cannot be reached with a live firm, and we disagree with their stance, we will refer the claim to Ombudsman on your instruction.
As of the 1st March 2022 we have implemented a new fee structure which we have explained below. If you signed your contract with us prior to the 1st March 2022, please refer to your signed claims pack for our previous fee terms.
Our fees are owed upon a successful claim and will depend on the Gross Compensation you receive. “Gross Compensation” means the amount awarded to you whether this is paid directly to you or paid into an investment or pension, and prior to any deduction of any income tax due to HMRC on your award. Please refer to the definition of “Gross Compensation” and Section 5 of our Terms of Engagement for further information including a table showing how our fees work in different scenarios.
If successful, your fee will be calculated based on which band your redress falls into and will be charged by whichever is the lowest of:
The below table outlines the redress bands, the maximum percentage rate of charge and the maximum total charge is for each band.
|Band||Redress||% Charge (with VAT)||Maximum charge (with VAT) (£)||Maximum charge (without VAT) |(£)|
|1||1 – 1499||36%||504||420|
|2||1,500 – 9,999||33.6%||3000||2500|
|3||10,000 – 24,999||30%||6000||5000|
|4||25,000 – 49,999||24%||9000||7500|
Examples of how this would work in practice:
|Band||Lower example||Higher example|
|1||You receive £100 in redress; our fee would be £36.||You receive £1499 in redress; our fee would be £504.|
|2||You receive £1,600 in redress; our fee would be £537.60.||You receive £9,999 in redress; our fee would be £3,000.|
|3||You receive £12,000 in redress; our fee would be £3,600.||You receive £24,999 in redress; our fee would be £6,000.|
|4||You receive £30,350 in redress; our fee would be £7,284.||You receive £49,999 in redress; our fee would be £9,000.|
|5||You receive £55,000 in redress; our fee would be £9,900.||You receive £100,000 in redress; our fee would be £12,000.|
Please note, the above fee examples are for illustration purposes only. They are not an estimate of the likely outcome or fee you will need to pay. Each claim depends on its own merits.
It is possible that our fee may become payable before you have access to your pension or investment which may result in you having to pay our fee from your own funds
You can cancel for free at any time within 14-days without giving any reason and without incurring any liability. You can communicate your cancellation by telephone, post, email or online.
You can cancel this agreement at any time after the 14-day cancellation period. However, if a complaint submitted by us is successful, the Success Fee will apply in the usual way.
You can cancel by post: Allegiant Finance Services Limited, Freepost RTYU–XUTZ–YKJC, 400 Chadwick House, Warrington Road, Birchwood Park, Warrington, WA3 6AE; (b) by email: [email protected]; (c) by telephone: 0345 544 1563; or (d) online at https://allegiant.co.uk/compliance/cancellation.
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We’ll treat your claim as strictly confidential. Your personal information is safe with us.
We’ve serviced over 100,000 clients across all service lines since our inception in 2010.
We could still help if you don’t have all your paperwork or details. Our team are experienced in helping locate paperwork where possible.
Our online application system and claim audit surveys enable us to offer an efficient and convenient claims journey.