Partially upheld: poor service, lack of communication, and failure to manage expectations complaint against MotoNovo Finance Limited

Decision detail

Summary

Mr H complained that MotoNovo Finance Limited failed to contact him about an outstanding balance of approximately £3,941.87 for over a year, then resumed contact in December 2025, causing him considerable distress given his ongoing health and financial difficulties. MotoNovo apologised and paid £100 compensation, with an FOS Investigator recommending an additional £100. The Ombudsman upheld the complaint regarding poor service and lack of communication, requiring total compensation of £200, but rejected Mr H's request to write off the balance, finding he remains legitimately liable for the debt despite his difficult circumstances.

The Ombudsman's reasoning

The Ombudsman found that MotoNovo failed to keep Mr H updated about the agreement and manage his expectations despite being aware of his vulnerable circumstances since 2020. The prolonged silence (over a year) followed by contact close to Christmas caused avoidable stress and anxiety. However, Mr H has a legitimate debt and MotoNovo never told him the balance was written off. The poor service did not change Mr H's ability to repay, as he was unable to work due to ill health both before and after the contact. Therefore, the debt cannot be waived, but compensation for the poor service is warranted.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website