Upheld: Debt collection practices complaint against BPO Collections Limited

Decision detail

Summary

Mrs O complained that BPO Collections Limited continued chasing payment for debts while she was disputing them based on a Debt Relief Order. When Mrs O provided email evidence of the DRO, BPO requested further verification due to a surname discrepancy, which Mrs O refused as she had already verbally verified herself. BPO continued collection activity despite the clear dispute. The ombudsman upheld the complaint, finding that FCA rules required BPO to cease collection activity and notify the debt owner when a dispute was raised, regardless of verification status. BPO was ordered to pay £150 compensation for the trouble and upset caused.

The Ombudsman's reasoning

While BPO may have been entitled to gather additional information about the dispute, FCA rules require that when a customer disputes a debt, the firm must either pass the information to the debt owner or notify them of investigation outcomes. Critically, CONC 7.5.3 prohibits continuing collection activity without clear justification when a customer claims a debt is disputed. BPO's email requesting verification was not sufficiently clear about its purpose, and Mrs O had already verbally verified herself. Regardless of verification status, BPO should have stopped collection activity and notified the debt owner of the dispute.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website