Partially upheld: debt collection practices, document provision, credit file reporting accuracy complaint against Lowell Portfolio I Ltd

Decision detail

Summary

Mr T complained that Lowell Portfolio I Ltd failed to provide documents he requested under sections 77-79 of the Consumer Credit Act 1974 and unfairly continued reporting a default to credit reference agencies. The account had been defaulted by original lender V and subsequently sold to Lowell. Mr T requested copies of the credit agreement, statements, and default notice to verify Lowell's legitimacy and fair reporting. Lowell initially refused to obtain these documents but later provided the credit agreement and statements. However, when Mr T disputed the default, Lowell only requested the date of the default notice from V rather than a copy of the notice itself. The ombudsman found Lowell's communication poor and their failure to promptly obtain the default notice unfair, but determined that Lowell was entitled to rely on V's confirmation of the default and continue reporting it to CRAs. The ombudsman partially upheld the complaint and ordered £250 compensation for poor communication and unfair handling of the dispute.

The Ombudsman's reasoning

The ombudsman found that while Lowell was entitled to rely on V's confirmation that a default had been applied and to continue reporting it, Lowell's communication was poor and confusing. Specifically, Lowell initially refused to obtain the credit agreement and statements (which they were required to do), and when Mr T raised a dispute about the default, Lowell failed to promptly request a copy of the default notice. Instead, they only requested the date it was sent. The ombudsman determined that when a dispute is raised, the debt collector should investigate by obtaining the relevant documentation. However, the ombudsman found that Lowell's receipt of the date from V was sufficient evidence to continue reporting the default, and that removing the default from the credit file would be inappropriate as it would create an incomplete or inaccurate picture of Mr T's credit history.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website