Not upheld: incorrect default recording and credit reporting complaint against Metro Bank PLC, trading as RateSetter

Decision detail

Summary

Mr A complained that RateSetter incorrectly recorded a default on his loan after he became redundant in early 2025 and forbearance measures ended in November 2025. RateSetter upheld the complaint, removed the loan records from credit reference agencies, and paid £75 compensation. Mr A sought additional compensation, claiming he missed employment opportunities due to the default appearing on his credit file. The ombudsman found RateSetter's remedy fair and did not uphold the complaint, as Mr A failed to provide evidence that missed opportunities were solely caused by RateSetter's actions.

The Ombudsman's reasoning

The ombudsman considered whether RateSetter treated Mr A fairly when notified of the error. The ombudsman found that RateSetter's approach of deleting all loan records from Mr A's credit file was fair, as this would remove the default and prevent future detriment. Although the ombudsman acknowledged Mr A's sympathy regarding missed employment opportunities, the ombudsman found that Mr A failed to supply evidence showing he missed opportunities solely because of RateSetter's actions, and therefore declined to make an additional financial award.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website