Not upheld: credit agreement administration, account access difficulties, reporting to credit reference agencies complaint against Vodafone Limited
Financial Ombudsman decision DRN-6207288 of 2026-04-24T00:00:00+00:00. credit agreement administration, account access difficulties, reporting to credit reference agencies complaint against Vodafone Limited. Outcome: Not upheld.
Decision detail
| Reference | DRN-6207288 |
|---|---|
| Decision date | 2026-04-24T00:00:00+00:00 |
| Firm | Vodafone Limited |
| Product | credit agreement (fixed sum loan for phone) |
| Claim type | credit agreement administration, account access difficulties, reporting to credit reference agencies |
| Outcome | Not upheld |
| Remedy | Vodafone should pay £100 to Mr T as a gesture of goodwill for inadvertent distress and inconvenience caused (if not already paid). The ombudsman reminded Vodafone of FCA requirements to treat customers experiencing financial hardship with forbearance and due consideration. |
Summary
Mr T complained about Vodafone's administration of a fixed sum loan agreement for a phone purchased in January 2024. After his phone was lost/stolen in January 2025 and he cancelled his direct debits in March 2025, Mr T claimed he could not make payments due to inability to access his online account via two-stage verification. Vodafone offered alternative payment methods (mobile app and telephone) and proposed a contact cleanse solution. When Mr T failed to pay, Vodafone defaulted the account at three months in arrears and terminated it with an outstanding balance of £315, reporting the missed payments to credit reference agencies. The ombudsman found Vodafone acted fairly, as alternative payment methods were available and properly communicated, and the default followed appropriate notifications and warnings in accordance with ICO guidance.
The Ombudsman's reasoning
The ombudsman found that although Mr T experienced difficulties accessing his online account, Vodafone provided alternative payment methods (mobile app and telephone) and made Mr T aware of these options. The ombudsman considered it reasonable for Vodafone to default and terminate the account when it reached three months in arrears, following proper notification and warnings. Vodafone was obligated to report accurate information to credit reference agencies, and there was no evidence they reported inaccurate information or promised not to report defaults. The ombudsman acknowledged the distress caused but found Vodafone's proposed resolution and £100 gesture of goodwill to be fair.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Vodafone Limited, all decisions | 72 | 34% |
Source
Read the original decision on the Financial Ombudsman Service website