Upheld: Debt collection practices complaint against Arrow Global Massey Limited

Decision detail

Summary

Mrs K received an unwanted watch in April 2020 financed through fraud in her name. She immediately reported it to the retailer, police, and Action Fraud, but neither the retailer nor original lender assisted her in returning it. When Arrow Global Massey Limited acquired the debt in June 2024, they did not act until January 2025, when they pursued payment despite Mrs K again explaining the fraudulent nature. Arrow appointed debt collectors while the complaint was disputed with the FOS. The ombudsman found clear evidence of identity theft and upheld the complaint, requiring Arrow to take possession of the watch, write off the debt, remove it from Mrs K's credit file, and pay £650 compensation.

The Ombudsman's reasoning

The ombudsman found sufficient evidence of identity theft based on: mismatched details on the credit agreement, Mrs K's immediate report upon receipt of the unwanted watch, retailer's suspicion of fraud, and the original lender's failure to investigate. Arrow's failure to act promptly when appointed as master servicer in June 2024, combined with their appointment of debt collectors while the complaint was disputed, caused unnecessary distress. The ombudsman rejected Arrow's conditions regarding the watch's condition and original packaging as the watch was already second-hand when sent and Mrs K had been given no return instructions. The £650 compensation was deemed appropriate despite Mrs K's request for £1,000, as the ombudsman noted long periods of inactivity and that Mrs K could have proactively sought return details.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website