Partially upheld: Credit file / adverse marker disputes complaint against Brachers Llp

Decision detail

Summary

Mrs B complained that Brachers LLP, a debt management firm, was responsible for defaults being incorrectly applied to her credit report by lender A after she had agreed a repayment plan. Brachers acknowledged a data error caused the defaults. Mrs B claimed financial losses totalling over £2,500 including legal costs, reduced credit limits, and higher mortgage payments due to inability to remortgage. The ombudsman partially upheld the complaint, awarding £500 compensation for emotional distress but rejecting all claimed financial losses due to insufficient evidence of direct causation and the availability of alternative remedies.

The Ombudsman's reasoning

The ombudsman accepted that Brachers were responsible for the data error causing the defaults. However, Mrs B's claimed financial losses could not be awarded because: (1) legal costs were avoidable through the complaints process; (2) credit limit reductions lacked evidence directly linking them to the defaults; and (3) the mortgage decline lacked written confirmation from lenders that it was caused by the defaults. The ombudsman determined £500 compensation was fair for the emotional distress and inconvenience caused by the unfair application of defaults, consistent with FOS compensation guidelines.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website