Not upheld: Debt collection practices complaint against BW Legal Services Limited

Decision detail

Summary

Mr S complained that BW Legal Services Limited was pursuing him for a credit card debt without providing evidence of authority to do so. The debt had been sold from the original lender C to business J in February 2020, with notice of assignment sent to Mr S. In December 2020, J appointed BW Legal to collect the debt. Mr S requested a copy of the deed of assignment, which BW Legal declined to provide. The ombudsman found that FCA regulations require notice of assignment but do not require provision of the deed upon request. BW Legal had provided the notice of assignment and demonstrated an arrangement with the original lender through access to account information and the original loan terms permitting assignment. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that FCA regulations require a notice of assignment to be sent when debt is sold, but do not require provision of the deed of assignment upon request. BW Legal satisfied regulatory requirements by providing the notice of assignment and demonstrating an arrangement with the original lender through access to account information. The original loan agreement terms explicitly permitted assignment. Therefore, BW Legal provided sufficient information to show it had authority to contact Mr S about the debt.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website