Upheld: Credit file / adverse marker disputes complaint against ACI-UK LIMITED

Decision detail

Summary

Mr D complained that ACI-UK Limited incorrectly reported a debt to his credit file following his discharge from a Trust Deed in 2018. The debt should have been updated to partially settled in June 2022 but was not updated until June 2023, and a £727 balance was incorrectly reported as owing for three months. ACI accepted the error and initially offered £300 compensation, which was increased to £400 by a FOS Investigator. Mr D rejected this, arguing it did not reflect the full impact over the extended period. The ombudsman upheld the complaint and awarded £400 compensation plus removal of the incorrect £727 balance reporting, finding this fair given the prolonged error and ACI's initial misunderstanding of Mr D's requests, though not persuaded a higher amount was justified under FOS guidelines.

The Ombudsman's reasoning

The ombudsman accepted that ACI made an error in credit file reporting and that Mr D was not responsible for claimed financial losses. The key issue was whether £400 compensation was fair. The ombudsman considered that the error persisted over several years (June 2022 to June 2023 for the partial settlement update, and three months for the £727 balance error), caused prolonged distress and inconvenience, and required significant time and effort from Mr D to resolve. ACI's initial misunderstanding of Mr D's requests added to the frustration. However, applying FOS compensation guidelines, the ombudsman determined that £400 was a fair and reasonable amount given the circumstances, despite Mr D's argument that a higher figure was justified.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website