Not upheld: unauthorized hard credit search / data handling error complaint against Yonder Technology Ltd (trading as Yonder)

Decision detail

Summary

Mr T complained that Yonder Technology Ltd performed an unauthorized hard search on his credit file when he applied for a debit card in June 2025. He claimed this caused his mobile phone contract application to be declined and resulted in financial loss and distress. Yonder admitted the error and agreed to remove the hard search from his credit file and pay £75 for distress and inconvenience. The ombudsman found no evidence that the mobile provider declined the application specifically because of Yonder's search, and concluded that the £75 payment was fair compensation for a one-off mistake that was quickly remedied. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman accepted that Yonder made a mistake in performing the hard search and that removing it from the credit file was the appropriate remedy. However, the ombudsman found no evidence that the mobile phone provider declined Mr T's application specifically because of Yonder's hard search, as the provider did not confirm this. The ombudsman concluded that £75 was fair compensation for a one-off mistake made by the firm that was put right quickly, with minimal impact beyond distress and inconvenience. The ombudsman noted that while Mr T's neurodivergence may have heightened his distress, this did not justify a higher award given the circumstances.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website