Partially upheld: poor communication regarding possession action; credit file reporting; record-keeping of customer circumstances complaint against Lloyds Bank PLC

Decision detail

Summary

Mr and Mrs M complained that Lloyds obtained an eviction warrant and sent an eviction notice in July 2024 despite assuring them legal action was on hold, wrongly reported missed payments on their credit files, and failed to keep records of their circumstances. Lloyds had placed a hold on further action on 12 July 2024 but the eviction notice was sent on 15 July 2024, causing shock to Mr and Mrs M. The ombudsman upheld the communication complaint, awarding £250 compensation, but rejected the credit file complaint as the reporting of serious ongoing arrears was accurate given no agreed payment arrangement existed. Lloyds had already paid £100 for incorrectly stating it only knew of their difficulties since 2016 when it had known since 2005.

The Ombudsman's reasoning

Lloyds failed to communicate clearly with Mr and Mrs M about the debt recovery process, particularly regarding the timing of the eviction notice relative to when it had agreed to suspend further action. While the warrant had already been issued before the hold was placed, Lloyds should have informed Mr and Mrs M of what was happening so they would not be shocked by the notice. However, the credit file reporting was accurate as the mortgage remained in serious arrears despite resumed payments, and no agreed payment arrangement was in place. The complaint about record-keeping was partially addressed by Lloyds' acknowledgment and £100 payment.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website