Not upheld: debt write-off refusal and communication fairness complaint against Lantern Debt Recovery Services Limited

Decision detail

Summary

Mr B complained that Lantern Debt Recovery Services Limited should have written off his debt due to his health condition and that they treated him unfairly in their communications, including allegations of discrimination under the Equality Act 2010. Lantern declined to write off the debt and directed Mr B to the Financial Ombudsman Service when he requested internal escalation. The ombudsman found no legislative requirement for debt write-off in these circumstances and determined that Lantern's communications were reasonable and fair, including their verification of the FOS complaint and handling of identical emails. The complaint was not upheld and no compensation was awarded.

The Ombudsman's reasoning

There is no legislative or regulatory requirement for a financial business to write off a legitimately owed debt based on a customer's health condition or vulnerability status. Vulnerable customers should receive the same access and options as non-vulnerable customers. Lantern's request to understand Mr B's circumstances more fully was not a denial of his vulnerability. Lantern was not required to accept a reduced settlement amount. The acknowledgement of one email was sufficient when three identical emails were sent. Lantern correctly directed Mr B to the FOS when he requested internal escalation, and asking for the case reference was a reasonable verification step.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website