Not upheld: Service failures generally complaint against Mortgages Plc

Decision detail

Summary

Mr O complained that Mortgages Plc sent him a bullying and abusive letter regarding alleged breaches of his mortgage after the firm received allegations from his freeholder about unpaid service charges, insurance premiums, and poor property maintenance. Mr O disputed all allegations and sought £2,000 compensation. The ombudsman found that Mortgages Plc acted fairly in contacting Mr O to make him aware of the freeholder's claims and to give him an opportunity to explain his position, as the firm had a legitimate interest in protecting its security. While the letter could have used more neutral wording, it was not harassing or bullying. The ombudsman upheld only the firm's previous offer of £25 compensation for a disconnected call and rejected the complaint for further compensation.

The Ombudsman's reasoning

The ombudsman found it was fair for Mortgages Plc to contact Mr O about the freeholder's allegations as the firm has a duty to assess information affecting its security. While the letter could have used more neutral wording, it was not harassing or bullying and gave Mr O an opportunity to explain his position. The upset Mr O experienced was primarily due to his underlying dispute with the freeholder, not any error by Mortgages Plc. The firm's concern about property maintenance and insurance was reasonable given its security interest.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website