Not upheld: unfair credit reporting and late payment marker application complaint against Barclays Bank UK PLC trading as Barclaycard

Decision detail

Summary

Ms W complained that Barclaycard unfairly recorded a late payment marker on her credit card account despite being aware of her ill health and financial vulnerabilities, arguing this breached Consumer Duty obligations. The ombudsman found that Ms W was indeed a vulnerable customer and Barclaycard was aware of her circumstances. However, the ombudsman determined that while Consumer Duty requires tailored support such as forbearance, it does not require businesses to erase accurate credit reporting. The late payment marker accurately reflected Ms W's failure to make a payment after her direct debit was returned, and the ombudsman found Barclaycard acted fairly in applying it. The complaint was not upheld and the ombudsman determined the marker should not be removed.

The Ombudsman's reasoning

The ombudsman acknowledged that Ms W was a vulnerable customer and that Barclaycard was aware of her circumstances. However, the ombudsman found that Consumer Duty requires businesses to offer tailored support such as forbearance, but does not require them to abandon responsible lending or erase accurate credit reporting. The late payment marker accurately reflected what occurred on the account, and Barclaycard acted fairly in applying it despite Ms W's vulnerabilities.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website