Not upheld: Credit file / adverse marker disputes complaint against Lendable Ltd

Decision detail

Summary

Mr F complained that Lendable was incorrectly reporting missed payments to credit reference agencies despite him maintaining repayments under a debt management plan entered into in July 2024. Lendable maintained that it was correct to report arrears that had accrued prior to the DMP and continued to accrue because Mr F's DMP payments were significantly less than his contractual repayment obligations. The ombudsman upheld Lendable's position, finding that under ICO guidance, the firm was required to report pre-existing arrears until repaid and to report ongoing arrears resulting from underpayments. The ombudsman also confirmed that Lendable correctly reported the account status as 'DM' to indicate the DMP arrangement.

The Ombudsman's reasoning

The ombudsman applied ICO guidance on arrears reporting and determined that Lendable was required to report arrears that existed before the DMP and continue to accrue due to underpayments. The ombudsman found that Lendable correctly reported the account status as 'DM' to indicate the DMP arrangement. While some CRAs display arrears as 'missed payments', this is the CRA's choice and not within Lendable's control. The ombudsman was satisfied that Lendable's reporting was accurate and compliant with regulatory guidance.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website