Partially upheld: Mortgage administration / arrears handling complaint against Marsh Finance Limited

Decision detail

Summary

Miss G complained to Marsh Finance about arrears recorded on her hire purchase agreement and excessive arrears notifications. Marsh Finance had taken over the agreement after the original lender entered administration. Although the arrears were correctly recorded and Marsh Finance had a regulatory obligation to notify customers, they had specifically assured Miss G that arrears letters would stop. Despite this assurance, Miss G continued to receive multiple automated reminder emails in close succession, causing her distress. The ombudsman upheld the complaint in part, finding the breach of assurance unjustified and awarding £150 compensation, while confirming the firm's right to continue appropriate communications about the arrears.

The Ombudsman's reasoning

While Marsh Finance correctly recorded arrears and had a regulatory obligation to notify customers of account status, they breached a specific assurance given to Miss G that arrears letters would cease. The continued automated reminder emails, though technically categorised as payment reminders rather than arrears letters, had the same material impact and contradicted the assurance given. This caused frustration and distress to Miss G. The ombudsman distinguished between the firm's right to send communications about genuine arrears and their obligation to honour specific assurances made to customers.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website