Not upheld: Debt collection practices complaint against Swift 1st Limited

Decision detail

Summary

Miss R complained about a second charge mortgage administered by Swift Advances, claiming the loan was mis-sold, fees were unfair, the balance was higher than expected, legal action was unfair, and she was not treated fairly during financial difficulty. The ombudsman could only consider complaints from February 2023 onwards due to time limits. The ombudsman found that Swift Advances acted reasonably: the high remaining balance resulted from the original loan terms and Miss R's missed payments; the firm gave her two years to arrange repayment after the term ended; it took reasonable steps to contact her when payments reduced; and it only initiated legal action as a last resort, later cancelling proceedings when Miss R secured employment and agreed a sustainable payment plan.

The Ombudsman's reasoning

The ombudsman found that Swift Advances acted reasonably throughout the complaint period. The high remaining balance was partly due to the original loan terms requiring £33,032 in interest, and partly due to Miss R's missed payments and associated fees. Swift Advances' actions were proportionate: it gave Miss R two years after the term ended to arrange repayment, took reasonable steps to contact her when payments reduced, and only initiated legal action as a last resort after no viable plan was in place. When Miss R's circumstances improved and she could afford a sustainable payment plan, Swift Advances cancelled the legal proceedings. The firm's administration, customer service, and communication were all reasonable.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website