Not upheld: failure to close account and incorrect credit file reporting complaint against Barclays Bank UK PLC trading as Tesco Bank

Decision detail

Summary

Mr B complained that Tesco Bank failed to close his credit card account after he settled the balance in July 2018, resulting in the account being incorrectly reported as open on his credit file until September 2025. Mr B claimed this caused significant financial detriment including declined credit applications and health impacts, and sought compensation of £5,640 to £9,400. Tesco Bank upheld the complaint and offered £100 compensation. The ombudsman did not uphold the complaint, finding that while Tesco Bank made an error, Mr B provided no evidence of significant detriment, an open account with zero balance likely benefitted his creditworthiness, and Tesco Bank took reasonable corrective action once aware of the issue.

The Ombudsman's reasoning

The ombudsman acknowledged Tesco Bank made an error in not closing the account in 2018 and continuing to report it as open until 2025. However, the ombudsman found no evidence of significant detriment to Mr B. The ombudsman reasoned that: (1) an open account with zero balance and up-to-date payments likely benefitted Mr B's creditworthiness rather than harmed it; (2) Mr B provided no evidence of declined credit applications or other concrete harm despite being given the opportunity; (3) even if the account had been closed in 2018, negative information would have continued to be reported for six years anyway; (4) the removal of the account from the credit file in 2025 appears to have caused any negative impact Mr B experienced, which would have occurred regardless of when Tesco Bank made the correction; and (5) Tesco Bank took reasonable steps to rectify the error once aware of it.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website