Pension FreedomJan 8 2018

Consumers bombarded with 4,200 cold-calls a minute

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Consumers bombarded with 4,200 cold-calls a minute

Consumers were bombarded with 2.2 billion nuisance calls and texts in the last year, approximately 30 per cent of which were directed at those aged 65 plus, research revealed.

The calls, which amount to more than six million made every day, or 4,200 made every minute, were predominantly about injury-related claims, pensions and payment protection insurance.

Since the pension freedom reforms in April 2015, which gave consumers over the age of 55 unfettered access to their pensions, there have been 2.7 million more pensions-related nuisance calls, according to research by Aviva, as scammers exploit the new rules to con consumers out of their savings.

Provider Aviva, which commissioned the research using Ofcom data, said over 65s were singled out as the age group being targeted the most.

However, according to data from November published by the Information Commissioner's Office nuisance calls chasing an accident claim was the most common concern reported by consumers.

Nuisance calls are a national epidemic which must be stopped.Rob Townend

MPs are set to debate the merits of a full ban on cold calling as part of the Financial Guidance and Claims Bill, which proposes the creation of a single financial guidance body. 

This body, an amalgamation of the Money Advice Service, The Pension Advisory Service and Pension Wise, is expected to be tasked with considering the impact of cold-calling on consumers and recommending a ban on such calls to the secretary of state, who can then enforce it.

The work and pensions select committee called for an outright ban on pension cold-calling in a report in December.

Rob Townend, UK claims director at Aviva, said: “Enough is enough. Nuisance calls are a national epidemic which must be stopped. 

“Whether it is a call chasing an injury you may or may not have sustained in an accident, or a pension scammer attempting to con unsuspecting individuals out of their hard-earned retirement savings, there is no place in our society for them."

Mr Townend urged the government to put a swift end to cold calls and added the bill was a "terrific opportunity to ban these unsolicited calls once and for all."

He said: "If the government is serious about protecting all members of our society, including the most vulnerable, then it should take decisive action and ban them."

The cold-calling debate gained widespread attention after IFA Darren Cooke, of Red Circle Financial Planning, launched a petition in September 2016 that was supported by a range of key industry figures, including former pension minister Baroness Altmann, her predecessor Sir Steve Webb and Rory Percival, a former technical specialist at the Financial Conduct Authority.

Mr Cooke said about Aviva’s new figures: "Sadly I'm not surprised by those numbers or what they are about and who they target.

"It is yet another indicator that the government needs to take action in this area and do it sooner rather than later.

"The longer they prevaricate and delay the more vulnerable people fall victim to cons, scams and crooks."

He said it had been 14 months since the government announced it would ban cold calling and almost 11 months since the original consultation concluded without any concrete action plan.

The government said last August it planned to introduce a ban on cold-callers who try to scam people out of their pension savings.

In November, MP Stephen Barclay, economic secretary to HM Treasury, told the work and pensions select committee the ban would be in place by 2020.

Mr Cooke said: "Moves are being made to include some measures in the guidance bill currently passing through the Lords but it would be far better for the government to make good on its promises, introduce proper measures and legislation and help to protect the public."

Separate research commissioned by Aviva last December charting consumer attitudes found 85 per cent of consumers supported a ban on nuisance calls.

About 57 per cent said nuisance calls and texts were the most annoying thing about having a phone.

The problem stems from the illegal selling of personal data.

Aviva found 87 per cent of people were in favour of tougher penalties on those caught buying and selling illegally obtained consumer data.

The provider also recommended registering with the Telephone Preference Service (TPS), which is a free service allowing consumers to opt out of unsolicited sales and marketing calls. 

carmen.reichman@ft.com