NS&I to pay compensation to bereaved families over account tracing failures

MSE_Emily

Tens of thousands are set to be compensated by state-owned savings provider NS&I after it failed to properly trace the savings accounts of deceased customers, leaving bereaved families struggling to access their cash. Here's what we know so far…

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NS&I to pay compensation to bereaved families over account tracing failures

daveyjp

Whilst not related to this I can understand people's frustration dealing with the organisation.

My daughter had Premium Bonds bought for her for many years and on turning 18 needed to take ownership.

To register she needed to verify her identity via a phone call from them, but the number registered was an old landline number. Getting it changed took the best part of three weeks. Phone calls, letters, form filling, more phone calls until eventually a new log in and password arrived.

I feel for anyone dealing with them and a bereavement.

BreakingGlass

When my son-in-law passed away a couple of years ago I helped my daughter with her executor duties. NS&I were by far the worst agency with whom we had to deal. We knew her husband had responsibility for their son's Childrens ISA (we held the account details), but it took several months and many calls to get this transferred to her own NS&I account. Letters and phone calls went unanswered and this added to my daughter's stress levels at what was a very difficult time. To this day we suspect that her husband may have had other savings with NS&I, but our attempts to establish a yes/no answer were fruitless; we sent several letters but NS&I would either not answer, answer a different question or forward a 'request form' that bore no resemblance to our queries. Responses to written requests would take several months.

Given the recent admissions that their 'account search' methodology was flawed, I may well suggest that my daughter re-submitts her queries for peace of mind/closure. I'll report back here with any updates.

newatc

If you are elderly, makes you wonder if you should take your money out now for the sake of your family.

masonic

https://forums.moneysavingexpert.com/discussion/comment/81938923#Comment_81938923

I encouraged my elderly mother to take her money out, not only because she is a non-taxpayer and could do better elsewhere, but also because she was having problems logging in after that awful IT "upgrade" and I could foresee problems down the line.

My own account has consisted of a single Premium Bond to keep the door open for some years now (no it hasn't won anything, nor do I expect it to 🙂).

BreakingGlass

I have kept £1in a Direct Saver with NS&I because I thought it would be a safe place to ‘pool’ my savings (currently in other providers’ higher interest accounts) prior to a house purchase. However, I can imagine NS&I mucking up a large transfer at a critical time in the purchase process, hence will probably use one of my many other accounts and rely upon the FSCS temporary higher balance protection.

QQQQQQQQ_Y

I am fortunate that I have had not had the experience of bereaved families unable to recover deposits held with NS&I.

However, I've been using the internet for many years, and when I heard that NS&I were going online I took the opportunity to access these services when they first became available. I was so seriously concerned about both the site design and its lack of understanding of basic account organisation etc. that I wrote to NS&I querying how they had so managed to hash-up what is such basic functionality, I then started to hear serious complaints after they introduced a flawed/failed 2FA environment.

The response I got from them (a basic denial about the inherent design failings) prompted me to ensure I never disposed of the original paper certificates I hold as I had no confidence in them. The recent revelations have made me realise I may have underestimated just how serious the problems were with this organisation, and that a flawed online service was the least of the problems.

caveat_emptor

A bank that lost it's customers cash. Could only be a government concern. ( having just ranted about DVLA another government concern). At present nsandi is not contactable, a shambles.

ranciduk

people should be aware too that if you need to make a bereavement claim with the clowns, they will demand probate for any sum over a poultry £5k

Ridiculous

mebu60

https://forums.moneysavingexpert.com/discussion/comment/81940354#Comment_81940354

'any sum over a poultry £5k' - Sure is chicken feed :-)

x44

There used to be a time when getting probate was required for all Deaths.

Anyway NSI must be glad they did mostly require probate as they will have the contact details of the executor and any solicitor handling the estate from HMG's probate records. If they are going back in time a fair way they are going to find many executors and also beneficiary of the NSI holding of the deceased have themselves died let alone all those who have moved address So finding out who is today is entitled to any sums missing now found is going to be messy.

Then on top of that for large estates there is the issue of increased IHT payable from the increased assets found.

I'm glad I'm not having to sort it out!