Partially upheld: debt collection practices; provision of evidence; credit file reporting; contact methods complaint against Cabot Credit Management Group Limited

Decision detail

Summary

Ms J complained that Cabot Credit Management Group Limited failed to provide adequate evidence of her debt, improperly reported it to credit reference agencies, and made excessive contact despite her vulnerable status as a disabled person. The Ombudsman found that Cabot had legitimate grounds to believe the debt was Ms J's based on matching personal details and trace results, and was entitled to continue reporting the default that had been recorded by the original lender before Cabot took responsibility. While contact was occasionally made outside standard hours, it did not meet the threshold for excessive contact. However, the Ombudsman upheld the complaint in part, awarding £100 compensation for delays in providing the credit agreement documents.

The Ombudsman's reasoning

The Ombudsman found that Cabot had a legitimate reason to believe the debt belonged to Ms J based on matching date of birth, address, and trace results, despite the name discrepancy and unsigned agreement. Cabot acted fairly by investigating the dispute and requesting information from the original lender. Regarding CRA reporting, the default was recorded by V before Cabot took responsibility, and Cabot was entitled to continue reporting it. On contact, while Cabot made calls outside standard hours and occasionally on the same day, this did not constitute excessive contact under FOS standards (8am-8pm is typically acceptable). However, Cabot caused delays in providing documents, warranting compensation.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website