Not upheld: defaults recorded on credit file; alleged failure to provide forbearance; alleged failure to serve default notices complaint against Nationwide Building Society

Decision detail

Summary

Mr B complained that Nationwide Building Society incorrectly recorded defaults on his credit file for a personal loan, credit card, and current account in 2023 and 2024. Mr B claimed he did not receive the default notices and that Nationwide failed to provide forbearance despite his financial hardship. The ombudsman found that Nationwide made regular attempts to contact Mr B and issued arrears letters before issuing default notices, but Mr B did not respond to these attempts until after the defaults were registered. The ombudsman was satisfied that the default notices were properly issued and complied with regulations based on collection notes and system records. The ombudsman concluded that without Mr B communicating his circumstances to Nationwide, the firm could not be found to have treated him unfairly, and therefore did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that Nationwide made regular attempts to contact Mr B and issued arrears letters inviting him to discuss support options, but Mr B did not respond until after defaults were registered. Without being able to discuss Mr B's circumstances, the ombudsman could not agree Nationwide treated him unfairly. The ombudsman was satisfied that default notices were issued as claimed based on collection notes and system records, even though the personal loan default notice was no longer available. The default notices for the credit card and current account complied with regulations, and it was reasonable to infer the personal loan notice did likewise. The ombudsman concluded it was reasonable for Nationwide to issue default notices and close the accounts given the arrears status and lack of agreement to repay.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website