Not upheld: unfair decline of payment arrangement request complaint against Intrum Mortgages UK Finance Limited trading as Intrum Mortgages
Financial Ombudsman decision DRN-6349238 of 2026-06-11T00:00:00+00:00. unfair decline of payment arrangement request complaint against Intrum Mortgages UK Finance Limited trading as Intrum Mortgages. Outcome: Not upheld.
Decision detail
| Reference | DRN-6349238 |
|---|---|
| Decision date | 2026-06-11T00:00:00+00:00 |
| Firm | Intrum Mortgages UK Finance Limited trading as Intrum Mortgages |
| Product | Mortgage |
| Claim type | unfair decline of payment arrangement request |
| Outcome | Not upheld |
| Remedy | None ordered. The ombudsman noted that if Mr and Mrs P's circumstances change, they should inform Intrum and it should reconsider their position, and that repossession should be a last resort. |
Summary
Mr and Mrs P complained that Intrum Mortgages unfairly declined their requests to enter into a payment arrangement on a second charge secured loan that fell into arrears soon after origination in 2006. The loan was sold to Intrum in 2019 and had a balance of over £30,000 remaining when the term ended in 2024. Mr and Mrs P proposed monthly payments of £230 and later £200, but Intrum rejected these as they would take over 12 years to repay and the borrowers' financial information did not support affordability. The ombudsman found that Intrum acted fairly by declining the proposals, exercising forbearance by not applying interest since 2013, and reasonably requesting updated financial information to assess sustainability.
The Ombudsman's reasoning
The ombudsman found that Intrum acted fairly by declining payment arrangements because the borrowers' financial information did not demonstrate affordability or sustainability of the proposed payments. The ombudsman noted that it would be unfair for a lender to accept unaffordable arrangements. Intrum exercised forbearance by not applying interest since 2013, maintaining a previous arrangement from 2019-2022, and exploring alternative options such as the property sale proceeds. The ombudsman found that Intrum's requests for income, expenditure and bank statement information were reasonable and in line with industry practice.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Intrum Mortgages UK Finance Limited trading as Intrum Mortgages, all decisions | 2 | 50% |
| Mortgage, all decisions | 25,098 | 22% |
Source
Read the original decision on the Financial Ombudsman Service website