Upheld: Mortgage administration / arrears handling complaint against Marsh FM LLP

Decision detail

Summary

Miss C complained that Marsh FM LLP repeatedly sent her incorrect arrears notifications and payment chasers despite her payments being up to date. The issue arose because standing order payments did not always process on the same day, triggering Marsh's auto-generated arrears messages. The FOS investigator upheld the complaint, recommending £100 compensation, but Marsh offered only £50. The ombudsman upheld the complaint, finding that Marsh could have prevented the issue by offering alternative payment methods and that Miss C's email evidence clearly demonstrated the serious distress and health impact caused by the incorrect chasers, justifying the £100 compensation award.

The Ombudsman's reasoning

The ombudsman agreed with the investigator that Marsh could have offered an alternative payment method such as direct debit to prevent the recurring arrears notifications. The ombudsman found that Miss C's email of 13 October 2025 provided clear evidence of the impact the incorrect chasers were having on her wellbeing, demonstrating she was becoming seriously ill from the stress. Therefore, £100 compensation was fair and reasonable in the circumstances, rather than the £50 offered by Marsh.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website