Not upheld: Service failures generally complaint against Experian Limited

Decision detail

Summary

Mr K complained that Experian Limited failed to adequately explain why his credit score dropped significantly following a change to their scoring system, from 951/999 (excellent) to 745/1250 (fair). Mr K's credit file contained no errors, and the score change resulted solely from Experian's new algorithm. Experian provided only generic guidance on factors affecting credit scores and offered detailed explanations only through a paid service. The ombudsman found that Experian had not acted wrongly, as they have the right to set their own algorithm without disclosing commercially sensitive details, and are not obliged to provide personalized explanations under their free service. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Experian had not done anything wrong because: (1) the score change resulted only from their new algorithm, not from errors in Mr K's credit file; (2) Experian has the right to set their own algorithm and need not disclose commercially sensitive details about how it works; (3) while Experian can provide generic guidance on factors affecting scores, they are not obliged to provide personalized explanations under their free service; and (4) it is reasonable for Experian to reserve detailed credit insights for paying customers.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website