Not upheld: Account administration errors complaint against Prodigy Finance LTD
Financial Ombudsman decision DRN-5868808 of 2025-11-12T00:00:00+00:00. Account administration errors complaint against Prodigy Finance LTD. Outcome: Not upheld.
Decision detail
| Reference | DRN-5868808 |
|---|---|
| Decision date | 2025-11-12T00:00:00+00:00 |
| Firm | Prodigy Finance LTD |
| Product | Other regulated product |
| Claim type | Account administration errors |
| Outcome | Not upheld |
| Remedy | None. No action requested from Prodigy. |
Summary
Mr S complained that Prodigy Finance Limited failed to administer his student loan in accordance with the terms and conditions and communicated unclearly regarding payment allocation. Mr S made overpayments and was concerned that Prodigy's four-tier payment allocation system did not match the three-tier system described in his loan agreement. The ombudsman found that Prodigy's treatment of capitalised interest as a separate layer was consistent with the agreement's definition of balance and that Prodigy provided fair explanations and reasonable documentation. The complaint was not upheld, and no remedy was ordered.
The Ombudsman's reasoning
The ombudsman found that although Prodigy presents the third payment tier as two separate layers (capitalised interest and principal balance), the loan agreement describes capitalised interest as part of the balance, so Prodigy are following the contractual terms. The ombudsman accepted that Mr S needed to contact Prodigy to query his payments but considered this a normal level of inconvenience that does not warrant compensation. Prodigy fairly answered Mr S's questions and provided reasonable documentation.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Prodigy Finance LTD, all decisions | 11 | 9% |
| Account administration errors, all decisions | 25,844 | 25% |
| Other regulated product, all decisions | 51,105 | 30% |
Source
Read the original decision on the Financial Ombudsman Service website