Upheld: unfair debt collection practices and failure to treat vulnerable customer fairly complaint against APFIN LTD trading as cashasap.co.uk

Decision detail

Summary

Mr H complained that cashasap pursued an outstanding short-term loan (loan four) unfairly after he disclosed health vulnerabilities and stated the contact was worsening his condition. While cashasap was not required to cease all contact or credit file reporting during a complaint, the ombudsman found that cashasap failed to vary its standard communication approach despite knowing Mr H was vulnerable and that its contact was causing disproportionate harm. The ombudsman upheld the complaint and awarded £150 compensation, while cashasap's offer to write off the loan balance and amend the credit file remained in place.

The Ombudsman's reasoning

While cashasap was not required to stop all contact or cease credit file reporting during a complaint, and the contact itself was not unreasonable in frequency or timing, the firm failed to demonstrate fair treatment toward a vulnerable customer. Mr H had explicitly disclosed his health circumstances and informed cashasap that its contact was causing additional harm. The ombudsman expected cashasap to vary its standard approach by limiting contact frequency and tailoring communications to account for Mr H's vulnerability, rather than maintaining a standard debt pursuit protocol. This failure to adapt caused additional distress to a vulnerable customer.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website