A huge number of commission-oriented bank employees and financial advisers marked the beginning of mis-sold PPI. Because of stressful work volumes, these individuals sold ineligible customers an insurance policy they cannot use. As claims for these mis-sold policies come to an end on 29 August 2019, self-invested personal pensions (SIPP) might be the next to take its place.
According to claims expert Rob Ridges, he estimates a collective £10 billion had been scammed from pensioners so far. Most financial advisers offer huge returns as high as 20% for a normal SIPP offering. Their investment vehicles, which are airport parking, holiday properties, green energy projects, and even obscure cryptocurrencies, are entirely questionable.
The Financial Conduct Authority’s respective survey revealed about 1:8 savers believe they presented and bought these questionable offers. The City watchdog asks all consumers to file a complaint and raise a flag to their respective issues to avoid getting timed-out of the complaints period.
Payment protection insurance is the biggest financial scandal in the United Kingdom. While SIPP may possibly reach PPI’s inflated £40 billion total value in complaints, authorities may cap it early if financial advisers and institutions raise the alarm for consumers by themselves. The banking sector’s small error of observing the mis-sold PPI situation passively contributed to the current consumer repayment value.