Not upheld: default registration and fairness of account management procedures complaint against Lloyds Bank Plc

Decision detail

Summary

Mr P complained that Lloyds unfairly defaulted his credit card account without giving him a fair opportunity to avoid it, citing language barriers, account access issues, and lack of written communication. Lloyds closed the account in August 2024 and registered a default in August 2025 after Mr P fell into arrears. The ombudsman found that Lloyds had provided multiple contact methods (written address, telephone with third-party support option) and payment alternatives (cheque, branch payment), and had sent appropriate warning letters before registering the default in line with ICO guidance. The complaint was not upheld, and the ombudsman declined to remove the default from Mr P's credit file.

The Ombudsman's reasoning

The ombudsman found that Lloyds provided fair communication and multiple contact and payment options despite Mr P's language barrier and account access issues. The letters included a postal address for written contact, telephone number with option to involve a trusted person, and details of independent support organisations. Mr P had alternative payment methods available (cheque, payment from another account, branch visit). The default was registered in line with ICO guidance when the account was three to six months in arrears, following appropriate warning letters. The ombudsman noted that the separate issue of account closures had already been considered in another complaint.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website