Upheld: Credit file / adverse marker disputes complaint against BMW FINANCIAL SERVICES (GB) LIMITED
Financial Ombudsman decision DRN-6135179 of 2026-06-29T00:00:00+00:00. Credit file / adverse marker disputes complaint against BMW FINANCIAL SERVICES (GB) LIMITED. Outcome: Upheld.
Decision detail
| Reference | DRN-6135179 |
|---|---|
| Decision date | 2026-06-29T00:00:00+00:00 |
| Firm | BMW FINANCIAL SERVICES (GB) LIMITED |
| Product | Motor finance (PCP / HP) |
| Claim type | Credit file / adverse marker disputes |
| Outcome | Upheld |
| Remedy | BMWFS must amend Mrs M's credit file entries to reflect that the debt should have been defaulted within six months of becoming outstanding, remove all references to the debt as missed payments from the assumed default date onwards, and not add any further missed payment markers regarding this debt. BMWFS must also pay £100 to Mrs M for distress and inconvenience caused by the wrong reporting and refusal to recognise the error. |
Summary
Mrs M complained that BMWFS wrongly reported her credit file for over six years following the return of a hire-purchased car in 2019, when an excess mileage charge and final payment remained unpaid. Rather than defaulting the debt within six months as required, BMWFS marked missed payments on her credit file every month from 2019 onwards. The ombudsman upheld the complaint, finding that BMWFS failed to follow proper debt handling procedures and that their argument that end-of-contract charges cannot be defaulted does not reflect the regulations they operate under. BMWFS was ordered to amend the credit file to reflect a default within six months of the debt becoming due, remove all subsequent missed payment markers, and pay £100 compensation for distress and inconvenience.
The Ombudsman's reasoning
The ombudsman agreed with the investigator that BMWFS failed to follow proper procedures for handling unpaid debt. While the money remains owing and nobody disputes this, the debt should have been defaulted within six months of becoming due in 2019, rather than being reported as missed payments every month indefinitely. The ombudsman rejected BMWFS's argument that end-of-contract charges cannot be defaulted, finding this does not reflect the regulations they operate under. The continued monthly missed payment reporting for over six years is unfair to Mrs M, particularly as the negative impact would have been similar had they correctly defaulted the debt in 2019.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| BMW FINANCIAL SERVICES (GB) LIMITED, all decisions | 1,463 | 46% |
| Credit file / adverse marker disputes, all decisions | 9,663 | 27% |
| Motor finance (PCP / HP), all decisions | 19,840 | 38% |
Source
Read the original decision on the Financial Ombudsman Service website