Households ready SIX months for payouts from Scottish Widows

Two grieving households have blasted Scottish Widows after they had been left ready six months for his or her inheritance. 

In each instances, an aged mother or father had died and the households had been due cash from both a pension or funding.

However, despite the fact that they requested the claims kind to withdraw cash or had already stuffed it in, they had been left ready for months. The delays had been blamed on IT issues and lacking information, the households declare.

Lacking payouts: Scottish Widows stored two grieving households ready for six months to obtain their inheritances, blaming the delays on IT issues

But, when Cash Mail took up the 2 instances, the pensions large sprang into motion and paid the cash again inside days.

Scottish Widows is not going to say how many individuals have been caught up in delays or disclose the explanation.

However, earlier within the yr, it admitted prospects had been experiencing ‘unacceptable delays’, and vowed to ‘improve sources and make adjustments’. 

A Scottish Widows spokesman says: ‘We’re sorry for the delays some prospects have skilled; the degrees of service have fallen wanting our regular requirements.

‘We’re working exhausting to enhance this by recruiting and coaching extra customer support employees, investing in our techniques and simplifying our procedures.’

Bereaved daughter Cathy McKay thought it might be a easy course of to acquire the cash that had been left in her late father’s property with Scottish Widows.

When her father, John Woods, died in Might on the age of 72, he left Cathy and her two sisters £80,000 within the type of a non-public pension that he had saved into throughout his profession as a on line casino supervisor. 

However after a six-month battle to get on the cash, they had been nonetheless ready — till Cash Mail’s involvement final week.

Beneath official steerage from the Monetary Ombudsman, these funds ought to be made inside simply ten working days of a supplier receiving a claims kind. However Cathy confronted a gruelling 110-day wait simply to pay money for the proper kind.

The 51-year-old made weekly telephone calls, despatched quite a few emails and letters, however nonetheless hadn’t even obtained the shape required to register her declare.

‘It has dragged on and on,’ she says. ‘This can be very irritating that Scottish Widows can deal with individuals like this and maintain on to our inheritance. I’ve phoned time and time once more over the previous 4 months as a result of nothing was taking place.

‘They stored saying they might ship the shape and I felt that they had an actual perspective, telling me that I “simply needed to wait”.’ Inside in the future of Cash Mail’s inquiry, Cathy obtained an apology from Scottish Widows, together with an e mail model of the shape to finish.

Added grief: In both cases, an elderly parent had died and the families were due money from either a pension or investment

Added grief: In each instances, an aged mother or father had died and the households had been due cash from both a pension or funding

One week later, the cost had been processed, together with £222.80 to cowl missed curiosity and £600 compensation for the inconvenience.

A spokesman says the delay was all the way down to human error: ‘We’re very sorry for the delay in settling this declare. ‘We are going to guarantee Mrs McKay isn’t neglected of pocket in consequence.’

Sarah Morgan, 53 — a single mum, who’s on Common Credit score, says she needed to get a grant to assist pay for the funeral, regardless of her mom, Jane Clifford, having ear-marked cash to cowl it.

‘It’s completely unacceptable — it’s not what my mom would have wished,’ she says. ‘I really feel like I’ve met with brick wall after brick wall, and discovering the vitality to telephone these individuals each week is exhausting. It’s so irritating to know that the cash is simply sitting someplace.’

Sarah, from Devon, is owed £9,077, which her mom had invested throughout her years as a housekeeper.

Jane, who was 84 when she died, had tried to withdraw the cash in June, after she was identified with terminal most cancers.

Nonetheless, she made an error with the checking account quantity when ordering the switch, which meant the cash by no means arrived and has been caught in limbo ever since.

Sarah was promised the cash inside 15 working days of submitting her software on the finish of July, however she nonetheless hadn’t seen any of it.

She has since been instructed that the IT division continues to be making an attempt to trace down the funds. ‘I’m making an attempt to make ends meet within the meantime. It’s the very last thing you want if you end up grieving,’ she says. ‘And I’m nonetheless coping with the loss of life final yr of my son, who was 19.

‘I might have given up if it wasn’t such a giant quantity.’

Inside per week of Cash Mail’s inquiry, Sarah obtained her mom’s legacy, plus £500 in compensation and £235.56 in curiosity — a complete of £9,813.

‘They’ve miraculously discovered the cash. It actually shouldn’t work that approach,’ she says.

A spokesperson for Scottish Widows says: ‘We’re very sorry for not settling Mrs Clifford’s declare sooner. We’ve now processed the cost.’

In September, our client champion Sally Hamilton helped a reader who was struggling to get well his late spouse’s £16,773 from Scottish Widows. The corporate provides pensions, life insurance coverage and investments.

After she contacted Scottish Widows, it confirmed it had all of the types and processed the cost, which included 8 per cent curiosity, plus one other £300 for the inconvenience precipitated.

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