Not upheld: Mortgage administration / arrears handling complaint against Premium Credit Limited

Decision detail

Summary

Miss O complained to PCL about how it handled her request to defer a home insurance policy payment from March to April 2025 due to an emergency. PCL directed her to the insurance broker for authorisation, cancelled the original agreement, and set up a new one with the requested payment dates within 10 days. Miss O was unhappy with delays and communication, particularly when told on 10 April that the agreement had been cancelled and a new one wasn't yet set up. The ombudsman found that PCL's handling was reasonable, the timeframe was acceptable, and while communication could have been better, PCL's apology was sufficient. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that PCL reasonably handled Miss O's request to defer payment by directing her to the broker for authorisation, which was appropriate under the circumstances. The ten-day timeframe from direct debit return to new agreement setup was not unreasonable. While the ombudsman acknowledged that communication during the 10 April call could have been better with more reassurance offered, the agreement was set up the same day and PCL's apology was sufficient given the circumstances. The ombudsman could not find evidence that PCL gave the impression the insurance would be cancelled.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website