Not upheld: Mortgage administration / arrears handling complaint against Moneybarn No.1 Limited

Decision detail

Summary

Mr R complained about how Moneybarn administered a conditional sale agreement for a vehicle purchased in May 2024. After Mr R disclosed financial difficulties and health issues in June 2025, Moneybarn placed his account on hold and offered support. When Mr R failed to make payments and the vehicle became untaxed, Moneybarn declined a payment attempt and eventually defaulted and terminated the agreement in September-October 2025. Following a total loss insurance claim, Mr R disputed the settlement calculation and objected to a £290 recovery fee. The ombudsman found Moneybarn treated Mr R fairly, took reasonable steps to provide support, properly followed default procedures, and accurately calculated the settlement amount. The recovery fee was waived by Moneybarn as goodwill. The complaint was not upheld.

The Ombudsman's reasoning

Moneybarn took reasonable steps to support Mr R including placing account on hold, attempting multiple calls, signposting to debt advice services, and arranging specialist third-party support. The ombudsman found it reasonable not to accept payment when the vehicle was untaxed as this would have been unaffordable and unsustainable. The default and termination were properly issued following required notifications and were in line with ICO guidance. The settlement calculation was detailed and accurate. Moneybarn was not obligated to change postal address without Mr R's request and reasonably continued sending letters to the registered address.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website