Not upheld: Account administration errors complaint against Charterhouse Claims Limited

Decision detail

Summary

Mr H complained to Charterhouse Claims Limited about receiving incorrect notifications that he had missed payments on his repayment plan when he had actually paid on time. This occurred on two separate occasions (May and September 2025), causing Mr H frustration and requiring him to contact CCL to prove payment. CCL upheld the complaint and reduced Mr H's outstanding balance by £55.16. Mr H referred the complaint to FOS seeking further compensation. The ombudsman found CCL acted unfairly but determined the £55.16 reduction was fair and proportionate compensation, equivalent to approximately three months of Mr H's £17 monthly payments, and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman accepted that CCL acted unfairly by incorrectly advising of missed payments on two separate occasions, causing frustration and inconvenience to Mr H. However, the £55.16 balance reduction (equivalent to approximately three months of payments) was deemed proportionate and appropriate compensation for the impact caused, falling in line with FOS service approach. The ombudsman clarified that FOS's role is to ensure compensation reflects the actual impact on the customer, not to punish the business.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website