Not upheld: Debt collection practices complaint against Match the Cash Limited

Decision detail

Summary

Mr G complained that MTC had engaged in excessive contact regarding his outstanding guarantor loan debt, claiming this constituted harassment and violated FCA principles and good business practice. MTC had arranged a £10,000 loan in July 2021 and Mr G experienced financial difficulties, entering into multiple payment arrangements over 12 months, many of which were broken. MTC eventually sent Default Notices and pursued formal recovery action. Mr G also objected to MTC contacting his guarantor while he was under the Breathing Space scheme. The ombudsman found MTC's contact was reasonable given the circumstances, including the repeated payment arrangement breaches and the account being significantly in arrears, and that contacting the guarantor was appropriate as guarantor loan protections do not extend to the guarantor. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that MTC's contact was not excessive given the multiple instances where Mr G failed to make contractual monthly payments and broke payment arrangements. While MTC provided forbearance through payment breaks and arrangements over 12 months, it was reasonable for the business to eventually take formal action to recover the debt. The ombudsman noted that businesses have a duty to treat customers fairly but also a duty to prevent further financial harm by allowing arrears to build unreasonably. Regarding contact with the guarantor during Breathing Space, the ombudsman found this reasonable because guarantor loan protections under Breathing Space do not extend to the guarantor, who remains jointly and severally liable. The ombudsman also noted that Mr G initiated contact with MTC during this period, making MTC's responses reasonable.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website