Upheld: data handling error - incorrect financial association on credit file complaint against Equifax Limited

Decision detail

Summary

Mr S complained that Equifax Limited incorrectly merged his details with a family member on the family member's credit file, despite having no financial connection. Equifax acknowledged the error was caused by a fault in its data matching system and corrected it by adding a Notice of Dissociation. The ombudsman upheld the complaint, finding Equifax liable for the error and the distress caused, but rejected Mr S' claim for £400 compensation. The ombudsman awarded £150, finding this fair compensation for the inconvenience and distress caused by Equifax's error, while noting the firm could not be held responsible for the family relationship breakdown or matters occurring before it was notified in September 2025.

The Ombudsman's reasoning

The ombudsman accepted that Equifax made an undisputed error in creating a financial link between Mr S and his family member. The ombudsman noted that Equifax could not be held responsible for the period before it was notified in September 2025, and that the firm's one-month investigation and resolution timeframe was reasonable. While acknowledging the significant distress caused to Mr S and his family relationships, the ombudsman could only hold Equifax responsible for its own actions, not those of third parties. The ombudsman also noted that only Mr S' name appeared on the credit file with no other personal or financial details shared. The ombudsman concluded that £150 was fair compensation for the inconvenience and distress caused by Equifax's error, rejecting Mr S' claim for £400 as not sufficiently justified.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website