A retired IT consultant has won £85,000 in compensation after he was poorly advised to transfer his pension - losing him thousands of pounds in interest.
Dave Rowland was mis-sold investment advice which resulted in him moving his £415,000 pension into a scheme that wasn’t suitable for his circumstances.
The 68-year-old, who lives in Spain with his wife Carol, originally had two pensions - one being a Defined Benefit Pension of £265,612 and the second a normal pension worth £149,677.
But he was convinced to move both of them into an overseas scheme - after it was advertised to him as offering tax-efficient savings.
However, the pension was put into unsuitable bonds that didn’t fit the risk he was willing to take on.
Mr Rowland transferred both of his pensions in October 2018 after being given advice by Omega Financial Solutions, a financial adviser that has since collapsed.
The couple went on to sought legal advice and contacted High Street Solicitors who worked to recover £85,000 in losses of interest on Mr Rowland’s pensions.
High Street Solicitors originally filed a claim against Omega Financial Solutions but this was rejected as the company has gone into administration.
They then resubmitted the application and the Financial Services Compensation Scheme found Mr and Mrs Rowland did have a valid claim.
However, the couple could've pursued the claim themselves for free via the FSCS.
Claims against bad pension advice where the firm has since ceased operating can be paid up to £85,000 by the Financial Services Compensation Scheme.
Have you suffered a similar situation after being given poor pension advice? Let us know: mirror.money.saving@mirror.co.uk
The couple were compensated the maximum award of £85,000 which was based on the hypothetical valuation of the Defined Benefit Pension at the time of the transfer and for the interest lost on his original pensions.
A quarter of the winnings, worth £21,000, went to the legal firm.
Mrs Rowland said she didn't realise they had lost out on any money until she was contacted by law firm High Street Solicitors
She added said: “It was a fantastic experience with High Street Solicitors. We were surprised to receive a penny, never mind the sum we have received.”
Julie Adams, High Street Solicitor’s Mis-Selling Manager, said: “This is a fantastic result in incredibly difficult circumstances for our client whose retirement security had been jeopardised by negligent financial advice.
“Cameron, the litigation executive in charge of this case, worked extremely hard to ensure a successful outcome for our client.”
The Financial Conduct Authority has previously estimated the harm created by unsuitable transfers has cost savers up to £2billion a year.
