Upheld: Credit file / adverse marker disputes complaint against Sky UK Limited

Decision detail

Summary

Mr E complained that Sky unfairly defaulted his fixed sum loan agreement for a tablet purchased in December 2022. After a failed direct debit in March 2023, the account fell into arrears. Sky issued a notice of default in July 2023 requiring payment by 3 August 2023, but Mr E only paid £34.50 of the required £69. Although Mr E made some payments in August-October 2023, he did not maintain subsequent monthly payments, leaving the account in arrears when Sky defaulted it in February 2024. The ombudsman upheld the complaint in part, finding Sky acted reasonably in defaulting the account but directing it to amend the default date to 3 August 2023 (when the notice deadline passed) rather than February 2024, allowing the default to fall off the credit file sooner.

The Ombudsman's reasoning

The ombudsman found that Sky complied with ICO guidance which permits default registration when a consumer is at least three months in arrears and expects registration by six months in arrears. Mr E was in sustained arrears from April 2023 and failed to remedy the breach by the 3 August 2023 deadline set in the notice of default, making only partial payment of £34.50 against the required £69. Although Mr E made some payments in August-October 2023, he did not maintain monthly payments thereafter, leaving the account in arrears in February 2024. Sky provided adequate notification through SMS and multiple written letters to the address Mr E provided. The ombudsman upheld the complaint only to the extent that the default date should be amended to 3 August 2023 (when the notice of default deadline passed) rather than February 2024, allowing the default to fall off the credit file sooner.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website