Partially upheld: failure to respond to information requests; debt recovery and statute barred claim complaint against Bank of Scotland plc

Decision detail

Summary

Mrs N complained that Bank of Scotland was unlawfully pursuing a mortgage debt that she claimed was statute barred under the Limitation Act 1980, as she had not made payments for over 12 years since May 2013. She also complained the bank failed to respond to her information requests. The Ombudsman upheld the complaint regarding the information requests, awarding £175 compensation, but rejected the statute barred argument, finding that a court had already issued a suspended possession order confirming the bank's entitlement to pursue the debt. The Ombudsman clarified that the Limitation Act applies only to court action, not to the underlying debt obligation, and that the bank is acting fairly in seeking repayment.

The Ombudsman's reasoning

The Ombudsman determined that while the FOS cannot decide legal questions about whether the bank is acting unlawfully, it can assess whether the bank has acted fairly and reasonably. The court has already issued a suspended possession order, which means the court was satisfied the bank was entitled to take legal action. The Limitation Act is relevant only to whether court action can be taken, not to whether the debt remains outstanding. The bank is entitled to pursue repayment and realise its security, and continuing to do so is not unfair given the circumstances.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website