Not upheld: unfair credit reporting and inadequate communication regarding payment obligations complaint against Home Retail Group Card Services Limited trading as Argos Financial Services

Decision detail

Summary

Mrs W complained that Argos Financial Services failed to warn her that payments were due on her Buy Now Pay Later purchases and unfairly reported missed payments to her credit file, which she claimed affected her ability to obtain a mortgage. Argos declined to remove the missed payment markers, stating the information accurately reflected the account history. The ombudsman found that Argos had communicated fairly through emails, text messages, and statements that clearly indicated payment obligations, and that Argos had complied with its legal obligations to accurately report missed payments to credit reference agencies. Although Mrs W subsequently repaid the arrears, the ombudsman concluded that Argos was obliged to continue reporting the account status accurately and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that Argos had met its obligation to communicate clearly and fairly with Mrs W. The terms and conditions and statements clearly set out payment obligations and when payments were due. Argos sent emails when statements became available and text messages when BNPL plans ended without payment. Although Mrs W claimed she did not recall receiving communications, Argos' records demonstrated they were sent in accordance with her stated preferences and there was evidence she opened the emails. The ombudsman agreed that Argos was obliged to report the account status accurately to credit reference agencies, including recording missed payments, even though Mrs W subsequently repaid the arrears. The ombudsman noted that Mrs W's lack of awareness of payment obligations did not mean Argos should change their credit reporting.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website