Not upheld: Mortgage administration / arrears handling complaint against Shop Direct Finance Company Limited trading as Very

Decision detail

Summary

Mr S complained that Very failed to provide adequate support when he contacted them in December 2024 to warn of upcoming financial difficulties following surgery that affected his ability to work. Very made no changes to his account at that time, and Mr S did not contact them again until April 2025 when he was in financial difficulty. Very then placed his account into breathing space but did not prevent BNPL interest from accruing on purchases that had not yet been added to his balance. After the complaint reached the FOS, Very offered to refund BNPL interest and account interest from 30 December 2024 plus £100 compensation. The ombudsman found this offer fair and reasonable, concluding that while Very could have done more in December 2024, the refund from that date appropriately recognized the point at which they learned of Mr S's difficulties, and a payment plan would likely have been unaffordable regardless.

The Ombudsman's reasoning

The ombudsman found that while Very could have done more in December 2024, the offer to refund BNPL interest and account interest from 30 December 2024 was fair because: (1) the BNPL terms were clear and agreed by Mr S; (2) Very did not know of Mr S's circumstances before 30 December 2024; (3) the I&E in April 2025 showed no disposable income, suggesting the same would have applied in December 2024, making a payment plan unlikely; (4) breathing space in April 2025 was reasonable and mitigated impact; (5) Mr S did not contact Very again until April 2025 despite being invited to call back; and (6) £100 compensation was fair given the circumstances.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website