Upheld: Credit file / adverse marker disputes complaint against Brachers Llp

Decision detail

Summary

Mr B complained that Brachers LLP incorrectly recorded information on his credit file following missed payments in December 2018 on two accounts with credit provider A. Although Mr B entered into payment arrangements with Brachers from January 2019 and maintained all payments, Brachers' system problems caused defaults to be incorrectly recorded. The ombudsman upheld the complaint, finding the credit file should show the December 2018 missed payment but reflect the ongoing payment arrangement without further arrears from January 2019. The ombudsman increased compensation from £100 to £350, recognizing the particular distress caused to Mr B, who works in finance and had to explain the defaults to his employer.

The Ombudsman's reasoning

The ombudsman found that whilst Mr B did miss the December 2018 payment deadline, Brachers' payment system problems and subsequent reporting to A resulted in incorrect information being recorded on his credit file. From January 2019, Mr B consistently maintained payments under agreed arrangements, so the credit file should reflect this. The defaults recorded caused particular distress given Mr B's employment in finance and the embarrassment of having to explain the situation to his manager. The ombudsman rejected Mr B's argument that the credit file should show no missed payment, as the December 2018 missed payment was factual, but agreed the ongoing payment arrangement should be accurately reflected without further arrears notation.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website