Upheld: Account administration errors complaint against Scottish Widows Limited
Financial Ombudsman decision DRN-6226277 of 2026-06-30T00:00:00+00:00. Account administration errors complaint against Scottish Widows Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6226277 |
|---|---|
| Decision date | 2026-06-30T00:00:00+00:00 |
| Firm | Scottish Widows Limited |
| Product | Pension |
| Claim type | Account administration errors |
| Outcome | Upheld |
| Remedy | Scottish Widows must pay £450 within 30 days of Mr C's acceptance of the decision. Scottish Widows must provide Mr C with specific information including: current value, contributions basis, projected pension value, GAR value at retirement age, and comparison without GAR. If information not provided within 30 days of acceptance, compensation increases by £100, with additional £100 for every further 30-day period of non-compliance. Mr C may make a new complaint if information is not provided within the specified timescale. |
Summary
Mr C received an incorrect pension statement in May 2025 showing wrong contribution figures. After reporting the error on 4 July 2025, Scottish Widows promised to send a corrected booklet but failed to do so. Despite a complaint being raised and a Final Response Letter issued in September 2025 with £100 compensation, Mr C still had not received accurate information by the time the case reached the FOS in October 2025. The ombudsman found that Scottish Widows' failure to provide correct pension information over more than a year, particularly given Mr C's approaching retirement date in October 2027, constituted a serious breach of its administrative duties. The ombudsman upheld the complaint, awarded £450 compensation, and directed Scottish Widows to provide specific GAR and valuation information within 30 days, with escalating penalties of £100 for each additional 30-day period of non-compliance.
The Ombudsman's reasoning
The ombudsman found that providing correct pension information is a fundamental role of a pension administrator. Scottish Widows failed to do so despite numerous opportunities over more than a year. The firm made promises to provide corrected information that were not fulfilled, and even after the case came to the FOS, there was no proactive engagement to resolve the issue. The firm's statement that it could not reprint the booklet was insufficient, as it should have provided the information in alternative formats. The delay and uncertainty caused particular concern given Mr C's imminent retirement and his need for accurate information about his pension value and GAR. The cumulative effect of the initial error combined with the prolonged failure to rectify it justified substantial compensation.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Scottish Widows Limited, all decisions | 836 | 20% |
| Account administration errors, all decisions | 26,574 | 25% |
| Pension, all decisions | 15,621 | 47% |
Source
Read the original decision on the Financial Ombudsman Service website