THE SITUATION
In January 1992, Mr M., an ex-mineworker, acted on what has now been proven to be unsuitable advice and transferred his Mineworker Pension Scheme (MPS) into a Personal Pension arrangement which is now managed by Prudential. The amount transferred was £17,076.37.
By February 2023, the value of the Prudential pension had grown to £164,738.14, which might, at first glance, appear to have performed well. In fact, Mr M. had actually suffered a significant loss, but was completely unaware of this, or that he might have a claim for the unsuitable advice he had received.
It was only after seeing one of our Facebook ads, that Mr M. decided to contact Money and Me Solicitors (MMS) to carry out an investigation into the advice he received in January 1992. Mr M. was unsure if he was entitled to any compensation, but he felt reassured after speaking with one of our Financial Service Analysts.
OUR APPROACH
After conducting an in-depth investigation, we established that, despite being a member of the Mineworkers Pension Scheme for less than 7 years, had Mr M. remained in the MPS, the equivalent ‘cash value’ of his pension would have been £328,540.40. This meant that Mr M. had suffered a significant loss of £163,802.26.
THE OUTCOME
On 6th February 2023, the Financial Services Compensation Scheme (FSCS) awarded Mr M.
£48,000.00 in compensation for the losses he had suffered. This was the maximum payment he was entitled to receive under the FSCS’ rules.
It should be noted that the claim had no impact on his personal pension arrangement with Prudential.
Mr M. was delighted with the outcome and stated, “A big thank you to Money and Me Solicitors for taking on my case. My pension was transferred so long ago and I did not realize that I had lost money, or even that I could make a claim.” – Mr M.
