‘I’ve been locked out of my £115,000 pension by Scottish Widows’

A woman has spent more than six months battling Scottish Widows for her £115,000 pension – blaming the delays on a communication breakdown at the provider.

Scottish Widows complaints have surged 63pc this year despite the company’s pledges to improve customer service, making it the most complained about pension provider on the Financial Ombudsman Service’s database.

Stephen Timms, chair of the Work and Pensions Committee, met the firm’s chief operating officer – Donald MacKechnie – at the start of parliament’s summer recess.

Mr MacKechnie assured the East Ham MP that Scottish Widows had invested in more workplace training, increased the number of employees answering calls and reallocated experienced staff to more complex cases.

But in 60-year-old Memuna Forna’s case, persistent delays are still making it impossible to plan her finances.

She says she has had to put off vital modifications to her home, which would help her better care for her daughter – who is non-verbal, has mobility issues, is doubly incontinent, relies on a tube for food and has to deal with daily seizures.

She said: “Over the past six months, I could have put this pension pot in a better performing fund. To not have the right to manage my own money is ludicrous. Scottish Widows has no reason other than incompetence.

“I haven’t been able to make adaptations to my new house for my disabled daughter because I’m being squeezed. These pension pots are a really important part of my future finances.”

Ms Forna instructed the release of two pots held with Scottish Widows in April, one with £100,000 and another with £15,000.

Jennifer Miles, of law firm Aletta Shaw Solicitors, wrote to Scottish Widows on May 15 on behalf of her client, Ms Forna, but the pension provider sent nothing back.

A month passed and there was still no sign of a reply from the Lloyds Banking Group subsidiary, so Ms Miles sent another letter on June 15. 

She also rang the provider, but couldn’t get through. She left her details and requested a call back, but she says she never received one.

More months passed, but the process of transferring her pension pots had still not begun. So Ms Forna decided to file a formal complaint.

This, she said, prompted a call from Scottish Widows on which an operative told her it would be sorted “within a few days”.

It was not. Shortly after making the complaint, she went to West Africa for work. In her absence, she was told a form had been sent to her home. When she returned, there was no such form waiting for her.

“At that point, I just lost all hope,” said Ms Forna, who is now a member of a Facebook Group called “Scottish Widows Complaint Platform”. It has 1,200 members, having grown from around 300 at the beginning of this year.

Scottish Widows claims it received no documentation about Ms Forna’s case until July, two months after Ms Miles sent the first letter.

Ms Miles is now concerned that the delays could lead to her client being left out of pocket.

She said: “A pension fund is not a fixed asset, it can go up or down – certain defined benefit scheme values have actually dropped significantly in recent times. 

Ms Miles is yet to receive further documents from Scottish Widows stating the final value.

A spokesperson for Scottish Widows said: “We are very sorry that Ms Forna didn’t receive the service from us that she should have. We are in contact with her to resolve the matter and are awaiting further instructions from Ms Forna before we can proceed. 

“We will look to offer compensation for the inconvenience caused and will cover any lost interest to ensure she isn’t left out of pocket.”

A Financial Conduct Authority (FCA) spokesperson said: “We’ve been engaging with Scottish Widows regarding concerns raised about customer service. 

“We recently wrote to life insurers and confirmed that we will be doing some work to understand the drivers of inadequate service. 

“Where firms are struggling with slow transfer and claim settlement times, as well as lengthy response times, we expect them to address this as a matter of urgency. 

“If a consumer is not happy with the service they receive, they should use the firm’s formal complaints process. If this does not resolve the issue they can then complain to the Financial Ombudsman Service.”

Have you been let down by Scottish Widows? Get in touch: money@telegraph.co.uk