Not upheld: account closure and default recording; alleged failure to provide reasonable forbearance complaint against Vanquis Bank Limited

Decision detail

Summary

Mr S complained about Vanquis Bank Limited closing his credit card and recording a default on his credit file after his account fell into arrears. In December 2024, Mr S confirmed to Vanquis that he could clear two missed payments over two months, and the bank offered a Match Pay plan with charge refunds. However, Mr S failed to make the required payment by 6 January 2025 and made no further payments from February 2025 onwards. After sending a default notice on 18 April 2025, Vanquis closed the account and recorded a default. The ombudsman found that Vanquis acted reasonably by relying on Mr S's representation and providing forbearance, and that Mr S did not communicate his need for additional support or his fraud victimization. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Vanquis acted reasonably by relying on Mr S's explicit confirmation in December 2024 that he could clear the arrears within two months. The bank provided forbearance through the Match Pay plan, which matched Mr S's payment with charge refunds. The ombudsman noted that Mr S did not communicate to Vanquis that he needed additional support beyond the agreed timeframe, nor did he disclose his fraud victimization at the time of contact. The default notice was properly addressed and sent, and Mr S received monthly statements clearly explaining his account status. The bank's actions were consistent with its terms and conditions, and the ombudsman found no evidence of unfair treatment or mistake.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website