Debt Collection

A financial services provider must communicate with a consumer in an accessible way that accommodates their disclosed disability and communication needs.

Banks are entitled to transfer accounts to debt collection agents as part of their recoveries function, but must provide reasonable customer service by responding to customer correspondence.

A firm must act fairly and reasonably in administering policy changes and must communicate clearly about the consequences of those changes, including compensation for distress caused by errors.

A provider must provide clear information about the consequences of activating a PAC code to avoid causing confusion that leads to financial detriment.

A lender must not pursue a consumer for arrears on a regulated credit agreement when no arrears actually exist, and must provide compensation for the distress caused by erroneous debt collection communications.

A business must provide at least 10 working days' advance notice of the amount and date of a direct debit collection under the Direct Debit Guarantee, unless a shorter period is agreed.

A business must take reasonable steps to correct errors on a consumer's credit file promptly and provide fair compensation for distress and inconvenience caused.

Under CIDRA, a consumer's duty to disclose information accurately applies at the time of each new contract; information more than five years old is not relevant to a renewal representation.

A financial service provider must provide requested information within a reasonable timeframe and demonstrate that documents have been sent to the correct address.

A debt advice provider must follow Mental Health Breathing Space guidance on Named Points of Contact eligibility and must not request information beyond what legislation requires without just cause to doubt the debtor's crisis treatment sta

A firm must not mislead a consumer about the enforceability of a debt or threaten enforcement when the agreement is unenforceable due to failure to provide required documentation under the Consumer Credit Act.

A debt purchaser must report accounts accurately to credit reference agencies based on information received from the seller, and is entitled to continue reporting a default that was applied fairly by the original creditor.

Debt purchasers must critically assess evidence when a consumer disputes debts, rather than relying solely on CRA address traces, as incorrect addresses can be linked to customers.

A business must provide accurate settlement figures and must correct credit file reporting errors promptly; compensation for upset and inconvenience caused by errors should be proportionate to the actual impact demonstrated.

A debt servicer administrator is responsible for the accuracy of credit file reporting and must compensate consumers for distress caused by erroneous adverse information, even where direct financial loss cannot be proven.

A debt counselling firm must respond promptly and appropriately to consumer complaints and formal requests such as Subject Access Requests.

A debt adjusting service provider must deliver the service they were engaged and paid to provide, or offer appropriate redress if they fail to do so.

A debt collection agency must treat vulnerable customers with care and make reasonable adjustments once vulnerability is disclosed, without requiring medical evidence or dismissing vulnerability based on unrelated factors.

Credit providers must report accurate information to Credit Reference Agencies, including recording when a customer is in a payment arrangement, even if arrears continue to be reported.

A debt management plan administrator is responsible for ensuring correct administration of letters of authority and must take reasonable steps to resolve creditor issues, making them liable for financial losses resulting from their failure

A lender in possession of a mortgaged property must take reasonable steps to prevent damage and must notify the borrower of significant incidents affecting the property.

Debt collectors may make reasonable contact attempts with debtors who are not engaging and have no payment arrangement in place.

A debt servicer must provide requested Consumer Credit Act documentation within 12 days or the account becomes unenforceable until they do, though a reconstituted copy of the credit agreement is a valid 'true copy' under CONC 13.1.4 and cas

A lender must carry out proportionate checks to ensure lending is sustainable, with the degree of thoroughness depending on factors such as loan amount, borrower income, and credit history.

A lender must make reasonable attempts to communicate before defaulting an account, but is not responsible for postal delivery failures when letters are properly addressed.

A bank is not obligated to refund loan repayments made in accordance with the loan agreement terms, and banks are not expected to identify insolvency and act differently unless formally notified.

The FOS can only investigate complaints relating to regulated financial activities under FSMA and DISP rules, not unregulated activities like airtime and broadband agreements.

An insurer must act fairly when cancelling a policy, and should not do so when the consumer has been reasonably reassured that outstanding payments will be rescheduled.

An insurer can void a commercial insurance policy from inception under the Insurance Act 2015 if the policyholder failed to make fair presentation of a material risk, provided the insurer would not have offered the policy had it known the t

A default can be registered in accordance with ICO guidance when an account is at least three months in arrears on the original agreement, even if a reduced payment plan is in place and a payment under that plan is missed.

A lender complies with the cost cap if the total amount collected in interest, fees and charges does not exceed 100% of the capital advanced.

An insurer/broker may cancel a policy for non-payment of premiums in accordance with policy terms after providing reasonable written notice.

Lenders may fairly review repayment arrangements at intervals to ensure they remain appropriate, but must communicate clearly about this process and its potential consequences.

A consumer who agrees to extend a hire agreement and continues to pay monthly rentals remains bound by the original agreement's maintenance obligations throughout the extended term.

Lenders must conduct proportionate affordability checks and make fair lending decisions based on the information obtained, considering the type, amount, and cost of credit alongside the borrower's individual circumstances.

A debt collector must treat vulnerable customers fairly and provide clear, consistent written guidance about what actions they need to take to access forbearance measures.

A creditor's relationship with a debtor may be unfair under section 140A of the Consumer Credit Act 1974 if unaffordable credit was provided without proportionate affordability checks.

A bank is not liable for losses from a scam unless there is sufficient evidence to establish the consumer was actually the victim of a scam.

A lender must follow proper procedures for default and termination, including issuing a Default Notice with adequate opportunity to remedy, but is not required to prevent default where a consumer fails to engage with offered support within

A borrower is contractually responsible for making loan repayments on time, and the bank may exercise its right of set-off and close accounts following default, even if the borrower claims not to have received notification due to address is

A bank may fairly close accounts and transfer debt to recoveries when a customer has failed to meet contractual loan repayment obligations, provided adequate notice periods and forbearance have been offered.

A lender may lawfully default a loan agreement when the borrower fails to make contractual payments on time, even if the borrower attributes those missed payments to the lender's prior actions.

A bank's communication about debt recall and DCA transfers must not be misleading, though use of the term 'terminated accounts' does not necessarily constitute misrepresentation if the context clarifies the meaning.

A debt collection firm may rely on a notice of assignment and a true copy of a credit agreement (without wet signature) to prove entitlement to collect a debt, as permitted by FCA CONC rules.

A debt purchaser may reasonably rely on information provided by the original lender and continue collection activity when a consumer fails to provide substantiating evidence of their dispute.

A debt purchaser may reasonably rely on the documents provided by the original creditor and report a default to credit reference agencies where the debtor's identity is clearly established on those documents, regardless of whether the debto

A debt collector is not liable for harassment where multiple agents contact a debtor sequentially for different debts or at different times, rather than simultaneously for the same debt.

A lender is entitled to issue a default notice and default an account when contractual payments are not made and a repayment arrangement is not maintained, provided proper notice procedures are followed.

A lender must take a proactive approach to credit reporting when arrangements to pay have been agreed with the borrower, rather than reporting missed payments during periods of agreed forbearance.

A debt collector must attempt to respect a consumer's preferred method of contact before continuing to use alternative channels, though they are not obligated to do so when seeking to establish contact for debt collection purposes.

A lender may reasonably exclude an account with arrears from a transfer scheme where payment history and likelihood of arrears repayment are relevant factors, provided appropriate support is offered to vulnerable customers.

A debt purchaser is entitled to buy a debt in good faith relying on the original lender's representations without conducting full due diligence on individual accounts in a portfolio purchase.

A lender must act fairly and reasonably when defaulting an account, including making reasonable adjustments for vulnerable customers, but may proceed with default if the customer fails to provide required affordability information despite r