Partially upheld: Mortgage administration / arrears handling complaint against EE Limited

Decision detail

Summary

Mr C applied for a credit agreement with EE to purchase a mobile phone in July 2025, but the application was declined. When Mr C requested reasons for the decline, EE refused to provide specific reasons, citing confidentiality of its credit scoring policies. Mr C complained that the lack of explanation was unfair and potentially discriminatory, particularly given his high credit score. The ombudsman found that while EE had the right to decline the application and was not required to reveal its credit scoring methodology, it failed to meet its responsibility to provide consumers with information needed to make informed decisions. The ombudsman upheld the complaint in part, finding that EE caused avoidable upset and inconvenience by not providing the primary reason for decline, and directed EE to pay £100 compensation.

The Ombudsman's reasoning

While EE has the right to determine its own lending criteria and decline applications, it has a responsibility to provide consumers with information needed to make informed decisions. EE failed to provide the primary reason for declining Mr C's application, which could have been done without revealing its credit scoring policies. Although EE's decision to decline was not found to be unfair or discriminatory, the failure to provide adequate explanation caused Mr C avoidable upset, distress, and inconvenience, particularly given his multiple attempts to obtain clarification.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website