Hereward Financial Services managing director Mick Jones requested £750 compensation after being landed with extra work due to errors made by the firm in valuing a client’s pension pot and processing an open market option request to buy an annuity from Legal & General.
Jones claims Co-op took over three months to deal with the case, misplaced three recorded delivery applications and issued an incorrect valuation, overvaluing the fund by £220,000. The client had an annuity worth £30,000 and was compensated by Co-op with an increase in fund value of around £1,300 and a one-off payment of £500.
Jones says he had to make 46 phone calls to sort out the problems but Co-op told him to invoice the client for compensation as it does not pay third parties.
He says: “I am appalled that Co-op has suggested there is no contract existing between us and therefore I cannot bill them for my time. How that squares with TCF, goodness only knows.”
A Co-op spokesman says: “We have a robust process for processing Omos and the majority of requests are dealt with smoothly and within appropriate timescales. However, it is clear there were delays in our handling of this case. We have been able to resolve the matter to the satisfaction of the customer and have instructed our legal department to engage with the IFA concerned to establish if the matter can be resolved amicably.”