Not upheld: unfair treatment; refusal to accept proposed payment plan; threat to sell pawned items complaint against Attenborough Jewellers Limited

Decision detail

Summary

Mr A pawned jewellery for £2,000 in January 2025 with repayment due in August 2025. When he could not pay on time due to a cancer diagnosis, he requested a tailored repayment plan based on advice from a debt charity. AJL did not accept his proposed £150 monthly payments or his later offer to pay in full in July 2026, and issued a notice of intention to sell. The ombudsman found that AJL acted fairly by suspending the sale, offering renewal options, and extending deadlines repeatedly over ten months, which constituted appropriate forbearance under FCA rules. The ombudsman also found Mr A's proposed repayment plan was not viable as accruing interest would prevent debt reduction, and Mr A had not provided evidence of his circumstances to support alternative arrangements.

The Ombudsman's reasoning

The ombudsman acknowledged that AJL was required under FCA rules (CONC 7 and PRIN 2) to treat customers in arrears with forbearance and due consideration, with examples including suspending interest, deferring payments, or agreeing repayment arrangements. However, the rules do not specify exactly what support must be offered. The ombudsman found that AJL's actions—suspending the sale, offering renewal options, and extending deadlines repeatedly over ten months—constituted appropriate forbearance. The ombudsman also found that Mr A's proposed £150 monthly repayment was not viable because the accruing interest (nearly £180 per month) meant the debt would continue to increase rather than decrease. Additionally, the ombudsman noted that Mr A did not provide evidence of his medical condition or financial circumstances to AJL, and that the terms and consequences of non-payment were clearly set out in the original agreement.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website