Partially upheld: incorrect information about account holdings; data protection concern complaint against National Savings and Investments (NS&I)

Decision detail

Summary

Following Ms B's death, NS&I incorrectly informed her estate that she held Premium Bonds worth approximately £30,000, when in fact the information related to another customer and Ms B had no active accounts. In reliance on this Valuation Letter, Mr B applied for a Grant of Probate (costing £300) and made funeral arrangements. When NS&I corrected its error, Mr B claimed compensation for probate costs, funeral costs (£4,135), wake costs (£1,200), and distress. The ombudsman upheld the complaint in part, directing NS&I to reimburse only the £300 probate fee with interest, as funeral arrangements predated the letter and distress compensation could not be awarded to Mr B personally as the eligible complainant is the estate only.

The Ombudsman's reasoning

The ombudsman found that NS&I's error in the Valuation Letter directly caused Mr B to apply for probate, which would not otherwise have been necessary. Therefore, the probate fee of £300 should be reimbursed with interest. However, funeral and wake costs were not incurred in reliance on the Valuation Letter as the cremation occurred before the letter was sent and arrangements were already made. The ombudsman could not award compensation for distress to Mr B personally as he is not the eligible complainant; only the estate of Ms B is eligible. Complaint handling is not a regulated activity and therefore outside the ombudsman's jurisdiction.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website