Phoenix Life Fiasco

katalog

Help please.

In March I decided to switch banks. Job done - no problems, that was until I contacted Phoenix Life. On 20 March I wrote to them giving the necessary bank details to enable them to start paying my monthly annuity into it on 1st April or as soon as possible thereafter.

Imagine my surprise when on 7th April, I received a letter from them. The gist is as follows:

"To enable us to issue future payments to your bank please provide a copy bank statement from the last three months.
Your payments will be suspended and no further payments made until we receive these bank statements."

Can anybody please tell me (or Phoenix, for that matter) how I am supposed to conjure up three months statements for an account which I have just opened? Furthermore I ask what right Phoenix have to view my personal bank transactions?

Having relied on this income for the last 10 years, I am now expected to exist without it, while Phoenix get their act together. At the moment I feel it is just a ploy to stop paying me.

Has anybody encountered such crass stupidity from Phoenix or can anyone suggest how I proceed from here.

tartanterra

I would take them to the small claims court immediately, for withholding money that is rightfully yours. Ensure you claim for your all your costs.
I've always found that as soon as you start causing these companies the same sort of inconvenience that they are causing you, their customer service starts to dramatically improve.

dunstonh

Imagine my surprise when on 7th April, I received a letter from them. The gist is as follows:

"To enable us to issue future payments to your bank please provide a copy bank statement from the last three months.
Your payments will be suspended and no further payments made until we receive these bank statements."

That is increasingly common nowadays. It is a fraud/money laundering prevention. Many providers want evidence. Especially since the regs changed to include money being paid out and not just money paid in.

Can anybody please tell me (or Phoenix, for that matter) how I am supposed to conjure up three months statements for an account which I have just opened?

They are not asking for three months statements. They are asking for a statement produced in the last 3 months.

Furthermore I ask what right Phoenix have to view my personal bank transactions?

They are not interested in your personal transactions. They are interested in the sort code and account number on the statement and making sure the name matches.

Having relied on this income for the last 10 years, I am now expected to exist without it, while Phoenix get their act together.

It is not phoenix who needs to get their act together. It is you. As soon as you provide them what they need, they will continue to pay.

At the moment I feel it is just a ploy to stop paying me.

And they may well think that your refusal to supply information is suspicious and report you under the money laundering regs for investigation. Chances are your view and their view would not be correct but if that is how you want to play it....

Has anybody encountered such crass stupidity from Phoenix or can anyone suggest how I proceed from here.

I dont think it is Phoenix that are being stupid here.

I suggest you do as they ask as it is reasonable and expected of them.

I would take them to the small claims court immediately, for withholding money that is rightfully yours.

What argument would you use for persuading the judge the money laundering laws should be disregarded?

Anti-money laundering requirements can be a pain. However, for the vast majority, it is a small admin issue that is easily sorted. You cant fight it and you can moan about it all you like. The providers find it an equal hassle but there is nothing they can do about a European directive.

katalog

Thanks for your input - very interesting.

Firstly, why did the DWP accept my change of bank without any question. By means of a simple phone call I gave them the necessary details and my pension will be credited without further ado. Perhaps someone should tell them they are not doing things correctly!!

How can Phoenix expect me to supply even one statement for an account which has yet to become operational!

Perhaps, if I send them a copy of my letter from my new bank
containing my details that might satisfy them.

Given that they have had 5000+ complaints to the Financial Services Onbudsman concerning pensions and annuities last year alone I feel I am justified in questioning their conduct.

molerat

Is "money laundering" the new "data protection" excuse

dunstonh

Firstly, why did the DWP accept my change of bank without any question.

Probably as the DWP isnt regulated by the FSA. (who fined another bank £8 million a couple of weeks ago for anti-money laundering failures)

How can Phoenix expect me to supply even one statement for an account which has yet to become operational!

ask the bank to produce one. You will have it in a couple of days.

Given that they have had 5000+ complaints to the Financial Services Onbudsman concerning pensions and annuities last year alone I feel I am justified in questioning their conduct.

Large firms get complaints by default. 5000 complaints for a business the size of Phoenix is not too bad.

xylophone

You have told Phoenix "on I April or as soon as possible thereafter" - get a bank statement for your new account and get it to Phoenix by first class recorded delivery - I should think you would have every expectation of receiving your pension on time on 1 May.

That said, someone I know had no difficulty whatsoever when advising her pension scheme administrator that she wanted her pension paid to an account other than the one she had used for years - the request was actioned immediately - this was a few months ago.

katalog

Just to update all who contributed to my posting.
Who says its not worth complaining when you feel justified in doing so. My complaint was upheld, and as a result I have today received a cheque for £50 by way of compensation.
Thank you Phoenix Life for admitting that you failed me in the first place and for saying sorry in such a meaningful way!!

RichandJ

katalog wrote: »

Just to update all who contributed to my posting.
Who says its not worth complaining when you feel justified in doing so. My complaint was upheld, and as a result I have today received a cheque for £50 by way of compensation.
Thank you Phoenix Life for admitting that you failed me in the first place and for saying sorry in such a meaningful way!!

Well done you. All that has actually happened is this:

low grade administrator asks for your details on change of banking details as per his/her instructions/checklist.

you respond by complaining.

complaint is escalated to someone with some power & it is decided to action your request & pay a small ex-g payment to make you go away.

Initial script/checklist will not be changed, simply because you were a one off outside the normal parameters.

For what it's worth, we wouldn't ask for statements, just physical signed confirmation that you've changed account.