Upheld: failure to comply with Consumer Credit Act 1974 sections 77-79; failure to clearly communicate unenforceable debt status complaint against Link Financial Outsourcing Limited

Decision detail

Summary

Mr P complained that Link pursued him for a debt that was temporarily unenforceable after he requested information under the Consumer Credit Act 1974. Link failed to obtain the required documents within 12 days, making the debt unenforceable from 12 June 2025. When Link contacted Mr P on 11 July 2025 about his repayment plan, they did not clearly communicate that the debt was unenforceable, contrary to FCA regulations. The ombudsman upheld the complaint but found the breach caused minimal detriment since Mr P was aware of the status and the documents were provided 12 days later. Link's £50 offer was accepted as fair resolution.

The Ombudsman's reasoning

While Link was entitled to continue pursuing payment despite the temporary unenforceability, FCA regulations required them to make clear in their communications that the debt was unenforceable. Link's 11 July 2025 email failed to do this. However, the ombudsman found minimal detriment because Mr P was already aware of the unenforceable status and had stopped paying, and the situation was cured within 12 days. The £50 offer was deemed fair compensation for the procedural breach.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website