Not upheld: Service failures generally complaint against Scottish Widows Limited
Financial Ombudsman decision DRN-6339352 of 2026-06-30T00:00:00+00:00. Service failures generally complaint against Scottish Widows Limited. Outcome: Not upheld.
Decision detail
| Reference | DRN-6339352 |
|---|---|
| Decision date | 2026-06-30T00:00:00+00:00 |
| Firm | Scottish Widows Limited |
| Product | Pension |
| Claim type | Service failures generally |
| Outcome | Not upheld |
| Remedy | Scottish Widows Limited must pay Ms R £250 compensation (£100 for incorrect information and form issues in 2016, and £150 for delays in responding to complaint letters) if not already paid. No additional compensation for financial loss is ordered. |
Summary
Ms R complained that Scottish Widows incorrectly told her in 2016 that her pension plan was frozen and she couldn't make contributions, causing her to miss out on pension contributions, tax relief, and investment growth over 9 years until 2025. Scottish Widows acknowledged providing incorrect information and offered £250 compensation for miscommunication and complaint handling delays, but refused to compensate for the hypothetical financial loss. The ombudsman did not uphold the complaint, finding that even if the misinformation occurred, Ms R could have contributed to alternative pension arrangements or sought advice, and her failure to do so was more likely attributable to her difficult personal circumstances and lack of employment income rather than Scottish Widows' error.
The Ombudsman's reasoning
The ombudsman found that even if Scottish Widows provided incorrect information in 2016, this did not directly cause Ms R's financial loss. The ombudsman reasoned that Ms R could have contributed to a different pension plan or sought financial advice if she genuinely wanted to make contributions. The absence of any attempt to contribute to any pension arrangement between 2001 and 2025, combined with Ms R's difficult personal circumstances and lack of employment, indicated that these factors—not the alleged misinformation—prevented her from making pension contributions. Additionally, Ms R lacked the financial means to contribute before 2025.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Scottish Widows Limited, all decisions | 836 | 20% |
| Service failures generally, all decisions | 34,229 | 32% |
| Pension, all decisions | 15,621 | 47% |
Source
Read the original decision on the Financial Ombudsman Service website