Not upheld: Irresponsible lending complaint against Swift 1st Limited

Decision detail

Summary

Mrs P complained that her second charge secured loan was mis-sold and irresponsibly lent, and that Swift 1st Limited acted unfairly in administering the loan and pursuing repayment after taking over in April 2023. The loan had been transferred twice since its 2007 origination, and Mrs P had not made payments since 2013, though statements continued to be sent showing an outstanding balance of approximately £35,797 at 0% interest. The ombudsman found that the loan transfer was lawful under the original agreement's assignment clause, the security remained unchanged, and Swift 1st's attempts to contact Mrs P and arrange a field agent visit were fair and reasonable. The complaint was not upheld, though the ombudsman encouraged Mrs P to engage with Swift 1st on forbearance options and seek independent debt advice.

The Ombudsman's reasoning

The ombudsman found that the loan transfer was lawful and fair as the original loan agreement explicitly permitted assignment at the lender's absolute discretion. The security remained unchanged - it was a legal mortgage from inception and remained so after transfer. Swift 1st's attempts to contact Mrs P and instruction of a field agent visit were reasonable contact methods, and the cancellation of the visit when Mrs P made contact was fair. The outstanding debt of approximately £35,797 remained unpaid and statements had been regularly sent confirming this, so Swift 1st was acting fairly in seeking repayment.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website