Last month a ban on cold-calling came into effect. Cold-calling is a solicitation of a potential customer, when this person has had no prior contact with a salesperson. In contrast, warm-calling is the solicitation of a customer who had previously expressed interest in the company or product.
It is no longer permitted for people to make unsolicited calls about pensions. If companies flout this rule, they could face a fine of up to half a million pounds. The hope is that this rule will prevent fraudulent companies from making those nuisance calls that could result in saver’s losing all the money they have gathered.
On 9th January 2019 the ban on cold calling began. The aim is to stop the estimated 8 scam calls being made a second. This means that there could be almost 250 million cold calls now out-lawed each year.
The initial announcement of this policy happened in 2016 but was postponed in 2017, at the time of the election. Eventually, in 2019, the new rules are in place, helping to protect millions from potential scam.
There are exceptions to the law. Those organisations authorised by the FCA or those that are a trustee or manager of an occupational or personal pension scheme, for instance. However, even these companies require the recipient to give consent to the calls.
What should you do?
Anyone receiving a cold call about their pension has been advised to report it to the Information Commissioner’s Office.
Fraud can have a devastating impact on the life of those effected. Now that cold-calling is illegal, people can feel assured they are now protected.
The content in this article was correct on 16th February 2019. You should not rely on this article to make important financial decisions. Teachers Financial Planning offers advice on pensions. Please use the contact form below to arrange an informal chat with an advisor and see how we can help you.