The Financial Ombudsman Service has upheld a complaint from a consumer who claims he was mis-sold a pension policy from Sun Life Assurance Company of Canada (UK), despite being unable to afford contributions.

The complainant, known as Mr Y, was sold a policy by Lincoln Financial in 1998 and ceased contributions a year later in 1999 due to his lack of employment.

Mr Y said he was pressurised into agreeing to take out a pension as the representative was a friend who was being ‘put under pressure to meet sales targets’.

The documentation compiled at the time recorded Mr Y was in his mid-twenties, employed, had an income of approximately £16,000 per annum, no pension provision in place and did not have a pension scheme available to him.

Ombudsman David Ashley issued a provisional decision on the complaint in June 2014, which was not to uphold the complaint as he was unable to establish the true nature of the sales process.

Mr Y opposed Ashley’s findings, saying the firm had ‘acknowledged its strategy to identify friends and family to sell to and that the representative would confirm the use of inappropriate pressure’.

He added he could not afford a pension at the time and the representative ‘became aggressive’ when it appeared he would decline the transaction.

In his final decision, Ashley upheld the complaint and decided Mr Y was pressured into taking the policy.

Further, he has ordered Sun Life Assurance Company of Canada (UK) to rescind Mr Y’s pension plan, and refund the net contributions paid with interest at the rate of 8 per cent per annum from the date that each payment was made to the settlement date.

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