28-05-2025
NS&I paid out £4k to wrong person
National Savings and Investments (NS&I) mistakenly paid out £4,300 to a grieving man after mixing up two accounts with the same name and birthday.
The recipient, known only as Mr S, was sent the cash after the death of a loved one, only for NS&I to realise it belonged to someone else and demand it back.
He was offered £350 in redress, but complained to the Financial Ombudsman Service after it caused him a 'significant amount of stress at a difficult time'.
The situation began after a woman, known as Ms S, passed away. As her sole beneficiary and the co-executor of her estate, Mr S discovered she had a premium bonds certificate.
He contacted NS&I with copies of her will and certificates showing her birth, marriage and death, requesting to transfer the money to his own premium bond account.
When NS&I responded, it confirmed another £4,300 in bonds were held in her name and sent the funds in December 2023. The bank had not realised the money belonged to another Ms S with the same first name, surname and date of birth.
After uncovering the error three months later, the bank demanded that the money be returned.
