Not upheld: Mortgage administration / arrears handling complaint against Lenvi Servicing Limited

Decision detail

Summary

Mr H complained that Lenvi Servicing Limited failed to collect direct debit payments on his Help to Buy loan since June 2023 and did not notify him promptly, resulting in arrears. The direct debit was cancelled due to a technical issue during Lenvi's takeover of the loan administration. Although an August 2023 statement clearly showed the payment problem, Lenvi did not send a formal arrears letter until February 2025. Lenvi subsequently agreed to refund £896.62 (94% of arrears) and pay £500 compensation. Mr H, who was experiencing mental and physical health difficulties, sought additional compensation from the FOS. The ombudsman upheld Lenvi's offer as fair and reasonable, noting it exceeded the FOS's typical approach, and declined to award further compensation.

The Ombudsman's reasoning

The ombudsman found that while Lenvi should have sent arrears letters earlier than February 2025, their offer of £896.62 refund (94% of arrears) and £500 compensation was more generous than the FOS would typically award. The FOS would have calculated any refund from August 2023 when the statement first notified Mr H of the payment issue, rather than from February 2025. Although Mr H faced significant personal difficulties including mental and physical health challenges, the ombudsman was satisfied that Lenvi had done enough to put things right. The ombudsman noted that Mr H was on notice from the August 2023 statement that payments were not going through.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website