Upheld: Service failures generally complaint against Scottish Widows Administration Services Limited
Financial Ombudsman decision DRN-5095198 of 2024-10-21T00:00:00+00:00. Service failures generally complaint against Scottish Widows Administration Services Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-5095198 |
|---|---|
| Decision date | 2024-10-21T00:00:00+00:00 |
| Firm | Scottish Widows Administration Services Limited |
| Product | Pension |
| Claim type | Service failures generally |
| Outcome | Upheld |
| Remedy | SWAS to pay Mr R £500 for trouble and upset caused (already offered). SWAS has already: (1) added £973 to Mr R's pension for the transfer delay; (2) compensated Mr R for National Insurance contributions and paid interest; (3) provided SAR documentation in hard copy format as requested. |
Summary
Mr R complained to FOS about Scottish Widows Administration Services Limited regarding incorrect information about salary sacrifice pension contributions, delays in transferring an AVC plan, and failure to initially provide a Subject Access Request in an accessible format (Mr R has dyslexia). SWAS acknowledged the errors and offered remedies including £973 added to his pension for transfer delays, compensation for tax and National Insurance contributions with interest, and provision of SAR documentation in hard copy. The Ombudsman upheld the complaint but found SWAS's £500 compensation for trouble and upset to be fair and reasonable, as SWAS had appropriately remedied the financial impact of their errors and Mr R had received the requested hard copy SAR.
The Ombudsman's reasoning
The Ombudsman found that SWAS made multiple mistakes but took appropriate steps to remedy them. SWAS correctly asked for evidence (payslips) to substantiate the tax claim before compensating, which was reasonable. SWAS has now compensated Mr R for the National Interest contributions impact with interest, calculated and paid £973 for the transfer delay, and provided the SAR in the requested format. While Mr R experienced inconvenience and stress, and has PTSD which amplifies the impact, SWAS has ensured Mr R suffered no financial consequence from their errors. The £500 offered for trouble and upset is fair and reasonable given the circumstances, the acknowledgment of errors, and the remedial steps taken.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Scottish Widows Administration Services Limited, all decisions | 8 | 12% |
| Service failures generally, all decisions | 34,193 | 32% |
| Pension, all decisions | 15,602 | 47% |
Source
Read the original decision on the Financial Ombudsman Service website