Upheld: service failure - misinformation regarding encashment requirements for deceased's account complaint against National Savings and Investments (NS&I)

Decision detail

Summary

Mrs K, as executrix of her late mother's estate, complained about NS&I's service in administering premium bonds. NS&I provided inconsistent and unclear information about encashment requirements, specifically regarding whether a certified copy of the grant of probate was necessary and whether the application form could be completed online. These errors caused delays in releasing the estate's funds. The ombudsman upheld the complaint but limited compensation to £120 for financial loss to the estate, rejecting claims for personal distress (as the estate is the eligible complainant), lost grant of probate (as Mrs K did not specify return method), and full lost interest (as investment intentions were not sufficiently detailed).

The Ombudsman's reasoning

The ombudsman found NS&I provided unclear and incorrect information about encashment requirements, causing delays. However, the complaint is brought on behalf of Mrs M's estate, not Mrs K personally, so compensation can only address direct financial loss to the estate, not personal distress. The ombudsman rejected claims for lost grant of probate (as Mrs K did not specify return method and NS&I is not responsible for post delivery) and lack of proactive notification about 12-month prize eligibility (as Mrs K was actively monitoring and understood the timeframe). For lost interest, without precise details of intended investment, £120 was deemed fair compensation representing approximately four weeks of lost interest based on the account Mrs K suggested.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website