Not upheld: appointment of LPA Receivers, disputed receiver fees, administrative delays in providing information complaint against Accord Mortgages Limited

Decision detail

Summary

Mr H complained about Accord Mortgages Limited's appointment of LPA Receivers to manage his buy-to-let property when the mortgage fell into arrears. Mr H disputed the £4,130 in receiver fees and claimed that delays by Accord in providing arrears figures prevented him from repaying earlier. The ombudsman found that Accord was justified in appointing receivers because it could not contact either borrower despite reasonable attempts, and that Mr H had the ability and means to make payments but chose not to. The ombudsman clarified that LPA Receivers act as the borrower's agents under law, making their fees the borrower's responsibility. While Accord had administrative failings, the £950 compensation already offered was deemed fair and reasonable, and the complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Accord was justified in appointing LPA Receivers because the mortgage had fallen into arrears and Accord was unable to contact either borrower despite reasonable attempts. The ombudsman noted that Mr H had the ability to make payments to prevent arrears from increasing but chose not to do so, and that he had admitted having cash available to clear arrears as early as August 2024. The ombudsman clarified that LPA Receivers act as agents of the mortgagor under section 109 Law of Property Act 1925, meaning their fees and actions are the responsibility of the borrower, not Accord. While Accord had administrative failings in responding to requests for information, these did not justify overturning the decision to appoint receivers or require additional compensation beyond the £950 already offered.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website