Upheld: Account administration errors complaint against Mortgages Plc

Decision detail

Summary

Mr and Mrs M complained that their mortgage direct debit was cancelled without their knowledge in June 2023, leading to a missed payment in August 2023. Mortgages Plc claimed the cancellation was discussed with Mr M to allow reduced payments, and that a reminder call was made in July. However, no written confirmation was provided despite being standard practice. When Mr M later disclosed he has onset dementia, and after receiving a worrying text and letter asking about the source of funds used to catch up on payments, the ombudsman found Mortgages Plc's handling caused avoidable distress. The complaint was upheld and compensation was increased from £150 to £300 total to reflect the impact on the vulnerable customer.

The Ombudsman's reasoning

While Mortgages Plc discussed the direct debit cancellation with Mr M and called to remind him, it failed to provide written confirmation despite this being its usual practice. This was particularly important given Mr M's onset dementia. Although Mr M was aware the direct debit had been cancelled when he made a card payment on 25 July, the lack of written confirmation contributed to confusion. The subsequent text and letter asking about the source of funds were unnecessary and caused avoidable distress to a vulnerable customer. Mortgages Plc's acknowledgment of these failures and some lapses in call handling support an upheld complaint.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website