Not upheld: unfair credit file reporting / default recording complaint against Lloyds Bank PLC

Decision detail

Summary

Mr A complained that Lloyds unfairly reported a default on his credit file after his account was closed. His account had been over the agreed overdraft limit for an extended period, and Lloyds sent multiple collection letters to his registered postal address, which Mr A claimed not to have received. The ombudsman found that Lloyds took reasonable steps by using the correct postal address and that Mr A could have contacted Lloyds about app issues. The ombudsman concluded the default was fairly recorded and did not uphold the complaint, though acknowledged Lloyds should have provided a written response to the complaint.

The Ombudsman's reasoning

The ombudsman found that Lloyds took reasonable steps by sending multiple letters to the correct postal address on file. Although the sum owed was small, the account was legitimately over the overdraft limit for an extended period. The ombudsman considered that Mr A could have contacted Lloyds about app issues and that using postal correspondence and the app documents section was appropriate. The ombudsman did not find it inherently unfair that Lloyds did not use alternative contact methods such as phone or text. Therefore, the default was fairly recorded.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website