Not upheld: Credit file / adverse marker disputes complaint against Sky UK Limited
Financial Ombudsman decision DRN-6057550 of 2026-01-22T00:00:00+00:00. Credit file / adverse marker disputes complaint against Sky UK Limited. Outcome: Not upheld.
Decision detail
| Reference | DRN-6057550 |
|---|---|
| Decision date | 2026-01-22T00:00:00+00:00 |
| Firm | Sky UK Limited |
| Product | Personal loan |
| Claim type | Credit file / adverse marker disputes |
| Outcome | Not upheld |
| Remedy | Sky's offer to remove the default from Mrs D's credit file conditional upon Mrs D either clearing the loan arrears or repaying the outstanding loan balance in full, with a £100 reduction in the sum due to reflect shortcomings in Sky's service. Sky reminded of their responsibility to treat Mrs D fairly with forbearance and due consideration if she is experiencing financial difficulties. |
Summary
Mrs D complained that Sky UK Limited unfairly reported her fixed-sum loan as defaulted and engaged poorly with her. She had taken out a 24-month 0% interest loan in October 2023 for a mobile phone handset but stopped making payments from August 2024 due to network problems with her separate Sky contract. Sky reported the account as defaulted in December 2024 after several months without payment and offered to remove the default if Mrs D cleared the arrears or repaid the full balance, less £100 compensation. The ombudsman found Sky's offer fair, as they were entitled to report the default under ICO principles and Mrs D had not demonstrated she was prevented from making payments, despite acknowledging Sky's service shortcomings.
The Ombudsman's reasoning
The ombudsman applied ICO principles which permit default reporting when an account is three months in arrears and normally by six months in arrears. Since no payments were made from August 2024, Sky were entitled to report the default. Mrs D was likely aware of her payment obligations and Sky had no records showing she was prevented from paying. While Sky acknowledged service shortcomings (misinformation and missed calls), the ombudsman found it fair to require Mrs D to clear arrears or repay the balance to have the default removed, as Mrs D had received the benefit of the device and missed required payments.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Sky UK Limited, all decisions | 62 | 41% |
| Credit file / adverse marker disputes, all decisions | 9,408 | 27% |
| Personal loan, all decisions | 22,762 | 30% |
Source
Read the original decision on the Financial Ombudsman Service website