Not upheld: Debt collection practices complaint against T.B.I. Financial Services Ltd.

Decision detail

Summary

Ms M complained that TBI acted unfairly by asking her to pay a mortgage shortfall debt created when her property was sold in 2010 following a possession order. TBI had purchased the debt and sought payment in 2016, threatening bankruptcy proceedings when Ms M did not respond. Ms M claimed she never received notification letters, and her solicitor argued it was unfair to pursue the debt after six years. The ombudsman found TBI acted fairly because Ms M had been notified within six years through multiple letters and debt collector contact, including contact with her husband, and had been offered opportunities to arrange repayment.

The Ombudsman's reasoning

The ombudsman found that TBI had made fair and reasonable attempts to contact Ms M over many years, including through letters in 2012-2013 and debt collector contact. Although Ms M denied receiving letters, there was no evidence they were false, and the telephone conversation with her husband supported that at least one letter reached her. The ombudsman noted that while a limitation period exists for enforcing judgments, the law permits bankruptcy proceedings in these circumstances, and Ms M had been given multiple opportunities to agree a repayment plan.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website