Not upheld: default recording, credit reporting, data processing, and administration of credit card account complaint against TSB Bank plc

Decision detail

Summary

Miss Z complained about TSB Bank's administration of her credit card account, specifically regarding the recording of a default in February 2025 after she fell into arrears from August 2024. She disputed the debt and raised concerns about TSB Bank's failure to initially provide a signed credit agreement, continued reporting of adverse information during the dispute, sharing of personal data with debt collection agencies, and continued debt recovery activity. The ombudsman found that TSB Bank followed proper procedures aligned with regulatory guidance, that the account showed sustained arrears with multiple missed payments, and that Miss Z had agreed to terms permitting CRA reporting of outstanding debt. The ombudsman determined TSB Bank acted fairly in reporting accurate information and processing data within the scope of the credit agreement, and therefore did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that TSB Bank followed proper procedures for recording defaults in line with regulatory guidance, which permits defaults when customers are three months in arrears. The account showed sustained arrears over an extended period with missed payments from August 2024 onwards. Miss Z had agreed to the credit agreement terms which explicitly stated that CRAs would record outstanding debt if not repaid in full and on time. The ombudsman determined that TSB Bank was entitled to report accurate information to CRAs reflecting the true repayment history, and that the delay in providing a signed agreement did not prevent TSB Bank from administering the account or pursuing repayments. Regarding data processing, the ombudsman found TSB Bank's actions were within the scope of the credit agreement and privacy terms, which permitted sharing information with third parties for debt recovery purposes.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website