Upheld: failure to provide clear information about credit file impact of payment deferral complaint against Everyday Lending Limited trading as Evlo

Decision detail

Summary

Ms B complained that Evlo did not discuss how her credit file would be impacted when she deferred a loan payment in April 2023. When Ms B applied for a mortgage in August 2025, she became concerned that Evlo was treating her account as being in arrears and contacted them for clarification, which caused her stress and inconvenience. Evlo initially defended their position by stating Ms B had made payments ahead of schedule and no arrears were reported, but admitted they had not explained the credit file implications at the time of the deferral. The ombudsman upheld the complaint, finding that Evlo should have clearly explained the impact on Ms B's credit file at the time of the deferral decision, as required by FCA standards for clear and fair communication. The ombudsman ordered Evlo to pay Ms B £100 compensation for the distress and inconvenience caused.

The Ombudsman's reasoning

The ombudsman found that the FCA expects clear and fair communication with relevant information provided at the right time. Evlo admitted they did not explain the credit file impact of the deferral. The ombudsman rejected Evlo's argument that the explanation was tailored to Ms B's circumstances, noting Evlo's own evidence showed they do not normally explain credit file reporting during such calls because it was not in their script. Even though the deferral did not result in arrears being reported, it would have been reasonable and fair to explain this to Ms B. The ombudsman agreed that Evlo's terms and conditions did not clearly explain how deferred payments are treated. The failure to provide this information caused Ms B distress and inconvenience, particularly when she was applying for a mortgage and concerned about arrears being reported.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website