Partially upheld: treatment of vulnerable customer in arrears; confusing communications; failure to make reasonable adjustments complaint against Barclays Bank UK PLC

Decision detail

Summary

Mr P complained about how Barclays handled his mortgage account during financial difficulties, including excessive contact, confusing MCA letters, and inadequate adjustments for his vulnerabilities. The ombudsman found that contact about the arrears was necessary and not excessive, and that communication adjustments were appropriate. However, the ombudsman upheld the complaint regarding MCA letters that demanded payment of a zero balance, finding Barclays failed to explain their purpose clearly despite knowing of Mr P's vulnerabilities and having previously upheld a similar complaint. Barclays was ordered to pay £150 compensation.

The Ombudsman's reasoning

The ombudsman found that while Barclays' contact about arrears was not excessive given the mortgage was in arrears and Barclays had a duty to keep Mr P informed, the bank failed to explain clearly the purpose of MCA letters that demanded payment of a zero balance. Although the letters clearly stated the balance was zero, the ombudsman found it unfair that Barclays sent confusing demand letters after previously upholding a complaint about similar letters, particularly given Mr P's known vulnerabilities. The adjustments Barclays made (communication preferences and account representative) were fair given the nature of vulnerabilities disclosed. The ombudsman declined to require Barclays to cease contact or provide the field agent's report, as these were necessary for mortgage management and internal assessment respectively.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website