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ScotEq under fireafter client is left without life cover

This week, Money Marketing brings you a double billing of Bungle Busters, with both Scottish Equitable and Halifax accused of administrative blunders.

Scottish Equitable is under the spotlight after an IFA contacted Bungle Busters following what he claims was a catalogue of errors by the life office.

Adviser Michael Both, of London-based Michael Philips, says ScotEq bungled a fund switch and failed to provide life cover for one of his clients, despite repeated requests and correspondence starting earlier this year.

The IFA requested that ScotEq underwrite life cover for his client after he chan-ged employment but, despite months of correspondence, requests were not followed through.

Both says the problems cost his client £500 and left his family vulnerable in the event of a life claim. He and his client were shocked at the double whammy of shoddy admin.

Both says: “My client and his employer had every reason to believe ScotEq had covered him. Had there been a claim, it would have been a huge problem. As a result, I have lost trust in ScotEq to safely and efficiently manage policies.”

ScotEq spokeswoman Louise McVicker says: “We accept responsibility for the con-fusion. Unfortunately, the fund switch was not sent directly to head office in order to carry out the request. We have reimbursed the client to the amount he would have received had the request been carried out immediately.

“For the life cover situation, the IFA had requested the monthly premium should not be over £100 but, as the cover was part of a personal pension, the total contribut-ion needed to be above this amount. We sent four letters to Mr Both for further instructions in light of this but did not receive a response.”

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