Not upheld: unfair treatment during financial difficulties and arrears management complaint against Mitsubishi HC Capital UK PLC trading as Novuna Personal Finance

Decision detail

Summary

Miss B complained that Novuna treated her unfairly when ill health prevented her from repaying a loan. Novuna had already agreed the loan shouldn't have been approved and removed all interest and charges, agreeing not to add adverse credit information. Miss B complained about receiving arrears letters and an erroneous direct debit collection in December 2025. The ombudsman found Novuna had provided appropriate forbearance, was required to send statutory arrears letters, and promptly refunded the erroneous payment. The complaint was not upheld, with the ombudsman confirming Novuna's existing arrangements should continue.

The Ombudsman's reasoning

The ombudsman found that Novuna had already provided substantial forbearance by removing interest and charges and agreeing not to report adversely to credit agencies. The requirement to send statutory letters about arrears was a regulatory obligation that Novuna could not avoid, and the prior reassurances given to Miss B were sufficient to address concerns about those letters. Novuna's offer of specialist support team assistance was appropriate. The erroneous direct debit was promptly corrected. The ombudsman noted that forbearance is intended to provide a reasonable breathing space for consumers to review options, not to leave debts outstanding indefinitely.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website