Not upheld: Account administration errors complaint against Scottish Widows Limited
Financial Ombudsman decision DRN-6424767 of 2026-06-24T00:00:00+00:00. Account administration errors complaint against Scottish Widows Limited. Outcome: Not upheld.
Decision detail
| Reference | DRN-6424767 |
|---|---|
| Decision date | 2026-06-24T00:00:00+00:00 |
| Firm | Scottish Widows Limited |
| Product | Pension |
| Claim type | Account administration errors |
| Outcome | Not upheld |
| Remedy | £500 total compensation already offered by Scottish Widows (£400 in initial response plus £100 in second response) for distress and inconvenience caused by incorrect information. No additional compensation ordered. |
Summary
Mrs T complained to the Financial Ombudsman Service about Scottish Widows Limited providing incorrect information regarding pension transfer requests. On 7 April 2025, Scottish Widows incorrectly told Mrs T that a £52,000 transfer had been disinvested when it had not yet been processed. Mrs T was given correct information on 11 April and agreed to transfer a lower amount of £49,000. Mrs T claimed she would have acted differently had she received accurate information and suffered financial loss due to lost investment growth opportunities. Scottish Widows offered £500 compensation for the distress caused. The ombudsman did not uphold the complaint, finding that Mrs T's original intention was always to transfer her funds away from Scottish Widows, and she would likely have continued with the transfer process regardless of the incorrect information, therefore suffering no financial loss.
The Ombudsman's reasoning
The ombudsman acknowledged Scottish Widows made an error in providing incorrect information on 7 April 2025 but found this did not cause financial loss. The key reasoning was that Mrs T's original intention was always to transfer her funds to her personal pension, and even with correct information on 7 April, she would likely have continued with the transfer process. The ombudsman noted that on 7 April the GPP value had already fallen below £52,000 due to market fluctuations, so any decision Mrs T could have made would not have been based on the original £52,000 amount. The ombudsman found persuasive evidence in Mrs T's actual conduct: when given correct information on 11 April, she continued with the transfer by reducing the amount, which reflected her initial aim. The ombudsman concluded the incorrect information did not change the course of the transfer and therefore did not cause financial loss, only distress and inconvenience.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Scottish Widows Limited, all decisions | 833 | 20% |
| Account administration errors, all decisions | 26,544 | 25% |
| Pension, all decisions | 15,602 | 47% |
Source
Read the original decision on the Financial Ombudsman Service website