Not upheld: Debt collection practices complaint against Lowell Portfolio I Ltd

Decision detail

Summary

Mr S complained that Lowell continued pursuing debts taken out fraudulently in his name even after he disputed them. Lowell purchased two fraudulent accounts and began collection activity. When Mr S raised disputes through a CRA in February 2024 and May 2025, Lowell asked him to contact them directly. Mr S did not contact Lowell until May 2025, at which point Lowell should have halted collections and begun investigation, but instead delayed until July 2025. The investigation concluded in September 2025 with both accounts being removed from Mr S's credit file. Lowell offered £200 in full and final settlement, which Mr S accepted. The ombudsman found the complaint not upheld, determining that while Lowell caused an eight-week delay, the £200 compensation was fair and reasonable, and Mr S could not prove the accounts caused his credit decline.

The Ombudsman's reasoning

The ombudsman found that Lowell's request for Mr S to contact them directly in response to the CRA dispute was reasonable and standard practice, so no action was required until Mr S made direct contact in May 2025. However, from that point, Lowell should have immediately halted collections and begun investigation. The eight-week delay from May to July 2025 in starting the proper investigation was unjustified and caused unnecessary stress through continued debt collector contact. However, the ombudsman could not establish that the accounts were the definitive reason for Mr S's credit decline, as the decline occurred before he raised the dispute directly with Lowell. The ombudsman concluded that £200 compensation was fair for the eight-week delay and associated inconvenience.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website