Not upheld: valuation accuracy and communication - estimated versus actual maturity value complaint against Aviva Life & Pensions UK Limited

Decision detail

Summary

Mrs D complained to the FOS about Aviva Life & Pensions UK Limited regarding her Bonus CashBuilder Plus Plan which matured in February 2025. Aviva had estimated she would receive approximately £11,500 in December 2024, but she actually received approximately £11,100 in February 2025. Mrs D was unhappy with both the difference in amounts and the way Aviva explained the discrepancy in their correspondence. The ombudsman found that while Aviva's wording was poorly chosen and appropriately apologised for, providing an estimated valuation is not bad practice when clearly marked as approximate with appropriate disclaimers about bonus fluctuations. The actual payment was verified as correct following a bonus rate review between the estimate and maturity date. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that while Aviva's wording in explaining the difference was poorly chosen and appropriately apologised for, the provision of an estimated valuation is not inherently bad practice. The December 2024 letter clearly stated the figure was approximate and explicitly warned that bonus rates could change, causing the amount to fluctuate up or down. Aviva verified that the actual payment amount was correct based on the bonus review that occurred between the estimate and maturity. The ombudsman concluded that Aviva had not done anything wrong and therefore could not uphold the complaint.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website