Not upheld: arrears handling, forbearance extension, credit file reporting, service failures complaint against OneSavings Bank Plc trading as Kent Reliance (KR)

Decision detail

Summary

Mr F complained about how Kent Reliance treated him after he fell into arrears on a buy-to-let mortgage, including the appointment of LPA Receivers, credit file reporting, and various service issues. The complaint covered multiple elements including a disputed forbearance extension, lack of firm deadline in arrears discussions, an additional payment demand, credit file amendments, and failures to assess a budget planner and send the Final Response Letter by email. KR accepted service failures on the budget planner and FRL delivery and paid £150 compensation. The ombudsman found no evidence supporting Mr F's belief that forbearance had been renewed, determined the additional payment was a timing consequence, found the credit file reporting accurate, and concluded the £150 compensation was fair redress for the accepted service failures. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the balance of probabilities test and considered the entire picture of evidence. On the forbearance extension, KR's contemporaneous notes and written communications did not support Mr F's belief that forbearance had been renewed. The additional £1,900 payment was an unfortunate timing consequence, not misconduct. Regarding credit file entries, the ombudsman found KR had not reported factually incorrect information or information arising from KR's error. The ombudsman noted that as a buy-to-let mortgage is a commercial unregulated transaction, Mr F is held to a different standard than residential borrowers. For the two service failures KR accepted (budget planner assessment and FRL delivery method), the £150 compensation was fair because the delay did not change KR's forbearance decision and KR had no reason to believe Mr F had not received the letter sent by post.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website