Upheld: Service failures generally complaint against Raylo Group Limited
Financial Ombudsman decision DRN-5382297 of 2025-03-10T00:00:00+00:00. Service failures generally complaint against Raylo Group Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-5382297 |
|---|---|
| Decision date | 2025-03-10T00:00:00+00:00 |
| Firm | Raylo Group Limited |
| Product | Other regulated product |
| Claim type | Service failures generally |
| Outcome | Upheld |
| Remedy | Raylo Group Limited must offer Mr W a choice of two options: (1) Return the device to Raylo in good condition, upon which Raylo will waive all arrears and remove all credit markers from Mr W's credit file; OR (2) Mr W keeps the device valued at £476.00 with no payment required for the device value, can opt to pay the full arrears, and Raylo will remove all credit markers from his credit file. Raylo must make arrangements with the debt company regarding the outstanding debt and arrears. |
Summary
Mr W complained that Raylo Group Limited returned his hired mobile phone device to his previous address instead of his updated address, causing distress and concern about potential exposure of his personal data to the new tenants. The device had been blocked by an insurance company and was returned by police to Raylo in February 2024. Although Raylo attempted to update Mr W's address, they could not alter the information held by their third-party assessment centre. Raylo acknowledged the error and proposed two settlement options: either Mr W returns the device and Raylo waives all arrears and removes credit markers, or Mr W keeps the device with no payment required and can optionally pay the arrears. The Ombudsman upheld the complaint, finding Raylo's proposed remedies fair and reasonable, and required Raylo to implement one of the two options upon Mr W's selection.
The Ombudsman's reasoning
The Ombudsman found that while Raylo acknowledged the error in failing to update Mr W's address, the key question was whether Raylo had done enough to put things right. The Ombudsman accepted that Mr W suffered distress and worry from the device being sent to the wrong address and the potential exposure of his personal data, though noted the device had a passcode which would have limited access. The Ombudsman concluded that Raylo's two proposed settlement options were fair and more than what would have been awarded for the distress and inconvenience caused, and therefore upheld the complaint with these remedial options as the resolution.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Raylo Group Limited, all decisions | 6 | 50% |
| Service failures generally, all decisions | 34,193 | 32% |
| Other regulated product, all decisions | 47,449 | 30% |
Source
Read the original decision on the Financial Ombudsman Service website