Not upheld: unfair treatment in financial difficulty; refusal to accept settlement offer complaint against Prodigy Finance Ltd

Decision detail

Summary

Mr B complained that Prodigy Finance Ltd treated him unfairly when his work authorisation in the USA was unexpectedly withdrawn, causing him financial difficulties on two loans totalling approximately $50,000. Mr B offered to settle the loans for $10,000, subsequently increasing his offer to $13,500 and $17,500, but Prodigy declined all offers. Instead, Prodigy offered Mr B temporary payment breaks, a three-month interest pause, and exploration of long-term repayment plans. The ombudsman found that Prodigy had treated Mr B fairly by offering proportionate forbearance measures in line with FCA regulations, and was not required to accept his settlement offers.

The Ombudsman's reasoning

The ombudsman applied the FCA regulatory requirement under CONC 7.3.4R that firms must treat customers in or approaching arrears or in default with forbearance and due consideration, proportionate to individual circumstances. The ombudsman found that Prodigy had explored reasonable options including temporary payment breaks, interest charge pauses, and long-term repayment plans. Since Prodigy offered proportionate forbearance measures and there was no regulatory requirement to accept Mr B's settlement offers, the ombudsman concluded Prodigy had not acted unfairly.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website