Partially upheld: unclear policy information, administrative errors, unfair premium charges complaint against Scottish Widows Limited

Decision detail

Summary

Mr P complained to the FOS about Scottish Widows Limited regarding administration errors with his Maximum Investment Bond following a system migration in late 2024, including inaccurate statements and unclear premium information. When extending his policy in January 2025, the maturity pack stated an ongoing premium of £1 per annum, but SW later claimed the correct premium was £1 per segment per annum (£10 total for 10 segments). The ombudsman partially upheld the complaint, finding SW had not provided sufficiently clear information about the segmented structure, and directed SW to waive £9 of the annual premium going forward, leaving Mr P to pay £1 per annum. The ombudsman rejected claims for management fee refunds and deemed the £800 compensation already paid to be adequate for distress and inconvenience.

The Ombudsman's reasoning

The ombudsman found that SW failed to provide clear information about the segmented structure of the policy when Mr P decided to extend it, meaning he was not given fair and not misleading information. While SW's management fees were justified as the firm provided ongoing management services, the premium issue required remedy. SW's agreement to waive £9 per annum going forward was deemed fair and reasonable. The £800 compensation already paid was considered adequate for distress and inconvenience caused by the administrative errors.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website