HISTORIC PRESS RELEASE : Pension companies fail to deliver compensation [August 1997]

The press release issued by HM Treasury on 9 July 1997.

Figures published today by the Economic Secretary, Helen Liddell, reveal that performance by the 24 pension companies compensating those missold pensions is slower than expected.

This is the first set of figures, to be published on a monthly basis, to show how firms are progressing compensation cases for victims of personal pensions misselling.

The figures show that only two companies have managed to compensate over 10 per cent of their cases and two companies failed to compensate in less than one per cent of their cases.

Publishing the figures, in response to a Parliamentary Question from Stephen Timms [East Ham], Mrs Liddell said:

“The volume of cases cleared is extremely disappointing. All the firms in the table have a great deal more work to do. Some appear hardly to have begun.

“It is now imperative that all firms – not just these 24 – which have sold personal pension should make serious efforts to improve the performance in completing their caseloads. This is not only in the interests of their customers but also of their own reputations with the general public.

“I will decide once I have seen some further figures to measure progress what further action may be called for.”