Not upheld: Debt collection practices complaint against T.B.I. Financial Services Ltd.

Decision detail

Summary

Mr W borrowed £14,000 in 2005, and the debt was sold to T.B.I. in 2007. After his debt management company ceased trading, T.B.I. requested updated income and expenditure information when Mr W wanted to reduce payments from £100 to £10 per month. Mr W refused to provide this information and complained that T.B.I. was making him pay more than he could afford, that the debt was unenforceable due to lack of a signed agreement, and that T.B.I. had not properly investigated his complaint. The ombudsman found T.B.I. acted fairly and reasonably, as it was entitled to request financial information before agreeing to reduced payments, and that the debt should not be written off since Mr W received the loan proceeds.

The Ombudsman's reasoning

The ombudsman found that T.B.I. acted fairly and reasonably in requesting an updated income and expenditure form before agreeing to a reduced payment arrangement of £10 per month. The firm was required to act positively and sympathetically to customers in financial difficulty, which it did by asking for financial information. The failure of the debt management company was not T.B.I.'s responsibility. Enforceability of the debt is a matter for the courts, not the ombudsman. Mr W received the loan proceeds and therefore it is not fair to require the debt to be written off.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website