Call firms that prey on elderly face huge penalties

COMPANIES RESPONSIBLE for making nuisance calls about pensions now face potential fines of up to half a million pounds.

From today, firms making unsolicited phone calls to people about their pensions may face enforcement action.

Previous research from the Money Advice Service suggests there have been as many as eight scam calls taking place every second – or 250 million calls per year.

The consequences of those calls can be devastating for victims, with the Financial Conduct Authority (FCA) saying pension scammers stole an average of £91,000 per victim last year.

John Glen, Economic Secretary to the Treasury, said: “Pension scammers are the lowest of the low. They rob savers of their hard-earned retirement and devastate lives.

“We know that cold calling is the pension scammers’ main tactic, which is why we’ve made them illegal.”

Pension scams, which can lead to people losing their life savings, often start with a cold call.

Warning signs that can show the caller on the phone is a scammer include offers of “free pension reviews”, high-pressure sales tactics, complex investment structures where it is not clear where your money will end up, and promises of too-good-to-betrue returns.

Guy Opperman, Minister for Pensions and Financial Inclusion, said: “Pension scams are despicable crimes, fleecing people of the retirement they’ve earned by doing the right thing, working hard and saving for the future.

“Banning pensions cold calling will protect people from these callous crooks and ensure fraudsters feel the full force of the law.”

The new ban prohibits cold calling in relation to pensions, with the aim of reducing the number of people who fall foul to scammers in this way.

Exceptions to the ban will include phone calls made by someone who is authorised by the FCA, or who is the trustee or manager of an occupational or personal pension scheme.

Cases where the recipient of the call consents to calls, or has an existing relationship with the caller, will also be exempted.

Mr Glen said: “If you receive an unwanted call from an unknown caller about your pension, get as much information you can and report it to the Information Commissioner’s Office.

“I’d also urge all savers to seek independent advice if you’re thinking about making an important financial decision.”

The move to outlaw cold calls about pensions has also been welcomed by the Pensions Regulator, which worked alongside the FCA on the ScamSmart advertising campaign launched last year.

Lesley Titcomb, chief executive of the Pensions Regulator, said: “The cold calling ban sends a very clear message – if anyone calls you about your pension, it’s an attempt to steal your savings. The ban draws a line in the sand for scammers. Cross it and you should expect to be prosecuted.”

People looking for help with their pensions can use the free Government-backed Pension Wise guidance service – www. pensionwise.gov.uk – to access trusted information.

We know that cold calling is the pension scammers’ main tactic.

John Glen, Economic Secretary to the Treasury, on the new crackdown.