Not upheld: delays in annuity setup and payment; bank account verification process complaint against The Prudential Assurance Company Limited

Decision detail

Summary

Mr D complained about delays in setting up an annuity with Prudential, expecting a six-week process but experiencing approximately 147 days from initial contact to payment. The primary issue arose when Prudential's automatic verification of Mr D's bank details failed and the bank statement subsequently provided did not include the full account number and sort code. Prudential requested a complete statement, but Mr D's financial adviser indicated this could not be provided, leading Prudential to require a new application with alternative bank details. Once the new application was submitted with different bank details, the process proceeded smoothly, with payment made within two months of application keying. The ombudsman found Prudential acted reasonably in requiring proper verification and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that Prudential acted reasonably in requiring proper bank account verification before processing the annuity application. Financial businesses are required to carry out verification checks, and Prudential was entitled to request a full statement showing the complete account number and sort code. The ombudsman noted that Prudential responded quickly when automatic verification failed and provided feedback within three working days of receiving the incomplete statement. The ombudsman rejected the 147-day timeframe as misleading, noting that Prudential's processing time from application keying to payment was approximately two months, which was reasonable. The ombudsman also found that Prudential was not made aware the application was urgent and appropriately liaised through the financial adviser. Prudential's complaint response was provided within the eight-week regulatory timeframe.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website