Partially upheld: debt collection practices - failure to properly respond to dispute, continued collection contact during dispute, credit reference agency reporting complaint against Lowell Portfolio I LTD

Decision detail

Summary

Mr H disputed three defaulted accounts that had been sold to Lowell Portfolio I LTD and requested credit agreements, statements, and evidence of Lowell's legal right to collect. Lowell initially refused to provide credit agreements, later changed position, and continued to contact Mr H for payment during the dispute period. Mr H also complained about continued CRA reporting despite his dispute. The ombudsman found Lowell should have requested all information upfront and should not have continued payment contact during the unresolved dispute, but determined the delays were ultimately short and CRA reporting was reasonable. The complaint was partially upheld with £100 compensation ordered.

The Ombudsman's reasoning

The ombudsman found that Lowell failed to request all information Mr H asked for when he first raised his dispute, causing unnecessary delays. Lowell also continued to contact Mr H for payment despite the dispute not being properly addressed. However, the ombudsman determined that the documents were ultimately provided within a short timeframe and there were not excessive payment requests. Regarding CRA reporting, the ombudsman found it reasonable for Lowell to continue reporting the accounts as the information reflected factual data about money owed and repayment history, and there was no technical capability to report accounts as temporarily unenforceable. The ombudsman concluded that while Lowell's handling caused some impact through delays and continued contact, the overall detriment was limited.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website