Partially upheld: Debt collection practices complaint against Intrum Mortgages UK Finance Limited

Decision detail

Summary

Mrs G complained that Intrum Mortgages UK Finance Limited delayed approval of changes to property title, failed to chase payments for several years, and unfairly sought repayment of her Islamic finance home purchase plan. The plan, taken out in 2007, had no payments made from 2017 onwards due to a dispute over a land transaction that began in 2014 and remained incomplete. The ombudsman found that while Intrum could have provided better service and support, it was not solely responsible for the transaction delays as multiple third parties were involved. Mrs G received sufficient notification of arrears through annual statements and letters. The ombudsman upheld the complaint in part, ordering £750 compensation for distress and inconvenience, but found it reasonable for Intrum to seek repayment of the balance now that the plan term has ended.

The Ombudsman's reasoning

The ombudsman found that while Intrum had not handled the matter well and could have done more to support Mrs G, it was entitled to take steps to protect its position and request legitimate information. The evidence did not support that the land transaction would have completed even if Intrum had approved it, as unforeseen events and third parties' involvement had complicated matters. The ombudsman concluded that Intrum was not solely responsible for the delays and that £750 was fair compensation for distress and inconvenience. Regarding the arrears, Mrs G was given sufficient information through annual statements and letters that the plan was in arrears and should contact the provider. As the plan term has ended, it is reasonable for Intrum to seek repayment of the balance due.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website