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

Decision detail

Summary

Mr S complained that BW Legal incorrectly pursued him for a debt related to an insurance policy fraudulently taken out in his name in 2017, continuing to contact him even after he disputed it without proving liability. BW Legal was instructed by firm J to collect the debt, which J had purchased from the insurer. Mr S had previously disputed the debt with the insurer but did not provide a crime reference number. The ombudsman found BW Legal acted in good faith on information from J without knowledge of the fraud, that Mr S had prior opportunities to resolve the matter, and that the contact was not harassing or threatening. The ombudsman did not uphold the complaint, noting that the insurer has since accepted the fraudulent nature of the debt and closed the account.

The Ombudsman's reasoning

The ombudsman found that BW Legal acted in good faith on information provided by J and had no knowledge of the fraud. Mr S had two prior opportunities to resolve the matter (with the insurer and with J) before BW Legal became involved. The ombudsman noted that Mr S's initial dispute in February 2023 did not explicitly mention the fraud, so BW Legal's request for a crime reference number was reasonable. The ombudsman found the contact was not excessive, threatening, or deceptive, and that BW Legal appropriately placed the account on hold when they received Mr S's May 2023 letter. The ombudsman could not hold BW Legal accountable for emails that were not received due to technical issues with an external platform.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website