Not upheld: incorrect credit file reporting; failure to update credit file following Debt Relief Order conclusion complaint against HSBC UK Bank Plc

Decision detail

Summary

Miss S complained that HSBC incorrectly reported her account as unsatisfied on her credit file after her Debt Relief Order ended in June 2021, when it should have been marked as satisfied. HSBC acknowledged the error, corrected the credit file entry, and paid £150 compensation. Miss S appealed, arguing the incorrect reporting severely impacted her financial recovery and that HSBC failed to recognize her vulnerability. The ombudsman found that while HSBC made an error, the firm has now corrected it and the £150 payment is fair; the ombudsman also found no evidence HSBC should have been aware of Miss S's vulnerability based on available information.

The Ombudsman's reasoning

The ombudsman found that while HSBC made an error in reporting the account as unsatisfied after the DRO ended, the firm has now corrected the credit file entry to accurately reflect the circumstances. The ombudsman acknowledged that other adverse information on Miss S's credit file (multiple defaults and the DRO itself) would have been considered by lenders, and therefore the single error of reporting the account as unsatisfied was unlikely to have been the sole reason for difficulties obtaining credit. The ombudsman also found no evidence that HSBC should have been aware of Miss S's vulnerability based on available information.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website