Upheld: Credit file / adverse marker disputes complaint against Marsh FM LLP

Decision detail

Summary

Mr R complained that Marsh FM LLP failed to update his credit file following his voluntary termination of a hire purchase agreement in August 2025, with the agreement incorrectly showing as active months later. The error occurred during Marsh's transition to servicing the account in January 2025. Although Marsh corrected the error and notified relevant agencies once informed, the ombudsman found the initial failure caused Mr R upset and worry, particularly given his personal circumstances. The ombudsman upheld the complaint and ordered Marsh to pay £150.00 for distress and inconvenience caused.

The Ombudsman's reasoning

The ombudsman found that Marsh had a responsibility to ensure accurate credit record updates, particularly given the January 2025 transition from Asset Exchange. Although Marsh acted quickly once notified of the error, the error itself occurred and caused Mr R upset and worry. The ombudsman was persuaded that Mr R's personal circumstances amplified the impact of the situation. While there was no evidence that Marsh's actions were the sole reason Mr R could not obtain new finance, the failure to update credit information in a timely manner caused demonstrable personal distress.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website