Partially upheld: Pension transfer advice complaint against Pension Works Limited

Decision detail

Summary

Mr G complained to Pension Works Limited about delays in obtaining pension transfer advice for three schemes and poor customer service. Although Pension Works was not responsible for the CETV deadlines being missed (as it had chased administrators for information), the ombudsman found the firm failed to keep Mr G adequately informed despite knowing he was racing against time. The firm did not respond to some communications, provided inconsistent fee information, and failed to explain changes clearly. While Pension Works had reduced its fee substantially, the ombudsman found this did not adequately compensate for the customer service failures. The ombudsman upheld the complaint in part and ordered Pension Works to pay £300 for distress and inconvenience caused by poor communication and lack of updates.

The Ombudsman's reasoning

The ombudsman found that while Pension Works was not responsible for the missed CETV deadlines (as it had chased administrators for information), it failed significantly in its communication and customer service. The firm did not keep Mr G adequately informed despite knowing he was racing against time to meet the deadlines. There were multiple instances of non-response to emails and calls, inconsistent fee information, and poor explanation of changes. The fee reduction, while substantial, was not clearly communicated as being in recognition of service failures and appears to have been based on the changing scope of work rather than compensation for poor service. The ombudsman rejected Pension Works' argument that the fee reduction alone was sufficient compensation, finding that customer service failures such as non-responsiveness and lack of updates warranted separate recognition.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website