Not upheld: administrative errors, poor service, lack of communication, delays in responding to requests complaint against Interactive Investor Service Limited

Decision detail

Summary

Mr K, a recently employed retiree, opened a SIPP with Interactive Investor and made pension contributions during the 2023/2024 tax year. He requested amendments to his contributions after discovering his employer had also made workplace pension contributions, but Interactive Investor failed to respond timely to his requests, causing him significant stress and preventing him from completing his self-assessment return with confidence. Interactive Investor eventually confirmed the amendments and paid £400 compensation in two tranches. Mr K complained that this was insufficient, claiming it should cover both financial losses and distress separately, and that the January 2025 discovery of an error reignited his concerns. The ombudsman found the £400 compensation fair and reasonable, rejecting claims for additional financial loss compensation as the actual losses were minimal and largely speculative.

The Ombudsman's reasoning

The ombudsman found that Interactive Investor's delays and poor communication caused Mr K considerable distress, worry, and inconvenience over several months. However, the ombudsman rejected Mr K's claims for separate financial loss compensation, finding that any actual financial losses were minimal (less than £30 in lost interest) and that consequential losses were speculative and difficult to quantify. The £400 compensation falls within the typical range of £300-£750 for the level of distress and inconvenience caused and is therefore fair and reasonable.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website