Not upheld: default notice, account termination, and debt collection referral complaint against Amplifi Capital (U.K.) Limited, trading as Reevo Money

Decision detail

Summary

Mr H complained that Reevo unfairly defaulted his loan account, stopped his direct debit payments without notice, and referred his account to a debt collection agency. Mr H had fallen into arrears and agreed to an arrears repayment arrangement on 12 June 2025 requiring both regular direct debit payments and additional manual payments of £36.99 per month. When Mr H failed to make the first additional payment due on 22 July 2025, Reevo defaulted the account on 31 July 2025 and subsequently referred it to debt collection in September 2025. The ombudsman found that the arrangement was a fair last-chance opportunity, Mr H was clearly informed of the terms and consequences, and his failure to comply justified the default and subsequent actions. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that the arrears repayment arrangement represented a fair last-chance opportunity for Mr H to avoid default, given the critical position of the account when the arrangement was made. Mr H was clearly informed of the terms and consequences of non-compliance. The failure to make the required manual payment on 22 July 2025, despite a reminder, constituted a breach of the arrangement. Given the account was already in arrears and subject to an existing default notice, it was fair and reasonable for Reevo to default the account. The stopping of the direct debit was a natural consequence of the agreement termination, which a reasonable customer would understand from the 31 July 2025 letter. The referral to debt collection was permitted under the agreement terms and was justified given the fair default and unpaid balance.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website