£108k pension payout blunder: What Friends Life Group had to say

Friends Life Group has defended its actions in dealing with the error which saw two sisters wrongly handed £108,000.

As reported today, the pair had already spent or passed on to relatives around £60,000 before the pensions and insurance firm realised its error.

Friends Life Group has provided The Gazette with a statement detailing the matter, which is reproduced here in full:

“In October 2013 a significant overpayment was made to the executors of Mr Gent’s estate on a claim.

“This was a result of human error.

“In November 2013, having established that this error had occurred, we contacted the executors’ solicitors to explain the situation, offer our apologies for the distress caused by the mistake, and to request repayment of the money that had been paid out through our error.

“We understand that requesting repayment of such a significant sum of money at a difficult time may have been upsetting for the family and we sincerely apologise for any distress caused.

“Given that the error had been discovered within a month and that the estate in question appeared to be of significant value, it was hoped that the matter could be rectified with the minimum inconvenience and distress.

“In response to our request for repayment of the money that had been paid out by mistake, the executors advised that the estate had already been distributed, and that accordingly the money would not be repaid.

“As per our standard procedures, we instructed our solicitors to take up the case on our behalf.

"Having failed to negotiate a settlement, we commenced legal proceedings, as a last resort.

“The main proceedings were concluded when the executors paid the full sum claimed.

“In January 2015 the court ordered that the executors make a further payment to cover a portion of the costs we incurred.

“We offer our unreserved apologies for the initial overpayment error and the subsequent distress this caused.

“It is regrettable that we were not able to resolve the situation amicably.

“Given the substantial nature of the overpayment, seeking repayment of the funds as per standard industry practice was necessary.

“We appreciate that financial matters of this nature require sensitive handling, which is why we only ever take legal action as a last resort.”