Not upheld: credit file reporting accuracy and removal of late payment marker complaint against Ikano Bank AB (publ)

Decision detail

Summary

Mr C complained that Ikano Bank should remove a late payment marker from his credit file. Mr C had purchased furniture on a 48-month loan, made a Section 75 claim regarding product quality, and after the claim was resolved in August 2022, Ikano resumed collections in September 2022. Mr C later disputed that he had authorised the resumed payments and stopped making payments in August 2023 in protest. Ikano correctly reported this missed payment to credit reference agencies. Although an Ikano agent incorrectly told Mr C in September 2023 that his credit file would not be affected if he caught up on payments, the ombudsman found this error had no material impact as the payment had already been reported. The complaint was not upheld, and the ombudsman considered Ikano's £30 compensation offer for the agent's error to be appropriate.

The Ombudsman's reasoning

The ombudsman found that Ikano properly notified Mr C in August 2022 that collections would resume in September 2022, and Mr C had replied to this email indicating awareness. Although Mr C was dissatisfied with the resolution of his Section 75 claim, this did not relieve him of his obligation to make payments under the loan agreement. Ikano was required to report the missed payment in August 2023 to the credit reference agencies, which it did correctly. While the agent's statement in September 2023 that the credit file would not be affected was erroneous, this error had no material impact because the missed payment had already been reported and there was nothing Mr C could have done at that point to change the situation. The ombudsman considered the £30 compensation offered by Ikano to be appropriate for the agent's error.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website