Not upheld: credit file reporting accuracy complaint against PayPal UK Ltd

Decision detail

Summary

Mr P complained that PayPal UK Ltd recorded adverse missed payment markers on his credit file for two instances of missed minimum payments (December 2021 for £6.21 and July 2025 for £16.42), claiming the reporting was disproportionate and harmed his mortgage application. PayPal maintained it was obliged to report accurate payment history to credit reference agencies. The Ombudsman found PayPal correctly reported accurate information in accordance with ICO guidance and regulatory obligations, that Mr P received required notice of payment due dates, and that he bore responsibility for ensuring timely payments. The complaint was not upheld.

The Ombudsman's reasoning

PayPal is obliged under ICO guidance and regulatory requirements to ensure credit files accurately reflect payment history. The terms and conditions explicitly warned that missed payments could affect credit records. Although Mr P feels the missed payment markers were disproportionate given the low values and otherwise good payment history, PayPal recorded accurate information. Mr P was provided with required notice of payment amounts and due dates, and ultimately had responsibility to monitor and ensure timely payments. No evidence shows PayPal recorded incorrect information.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website