Not upheld: Account administration errors complaint against Salary Finance Loans Limited

Decision detail

Summary

Mrs H complained about how Salary Finance Loans Limited handled her loan account after SF's systems incorrectly showed her £13,548.29 loan as fully repaid in January 2025 when she still owed £375.95. Mrs H discovered the error when she contacted SF for another loan. SF admitted the error and offered to reduce the outstanding balance to £216.09, ensure no adverse credit information was recorded, and amend the credit file to show repayment in January 2025 once paid. The ombudsman found SF was entitled to request repayment of the legitimate outstanding balance and that its offer was fair compensation for the distress and inconvenience caused, as the error had limited financial impact on Mrs H.

The Ombudsman's reasoning

The ombudsman accepted that SF made an error in telling Mrs H the loan was fully repaid when she still owed money. However, the ombudsman found that SF was entitled to ask for repayment of the legitimate outstanding balance. The ombudsman considered that the error had limited financial impact on Mrs H as she was notified before the final repayment was due in February 2025 and benefited from not having that payment deducted. SF's offer to reduce the balance by approximately £160, ensure no missed payments were recorded on the credit file, and amend the file to show settlement in January 2025 was deemed fair compensation for the distress and inconvenience caused.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website