Not upheld: Credit file / adverse marker disputes complaint against Vanquis Bank Limited

Decision detail

Summary

Mrs S complained that Vanquis unfairly registered a default on her credit card account after she was hospitalized in March 2025 and unable to work or make payments. She contacted Vanquis in May 2025 about her financial difficulties, and Vanquis referred her to a third-party debt organisation. When Mrs S did not follow up and arrears continued to accrue, Vanquis sent a Notice of Default in June 2025 and registered the default in July 2025. Mrs S argued that her health vulnerabilities and inability to open correspondence meant she was unaware of the default and that Vanquis should have shown more flexibility and compassion. The ombudsman found that Vanquis correctly applied ICO guidance in registering the default and was not put on notice of Mrs S's inability to manage correspondence, and therefore did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that Vanquis correctly applied ICO guidance by registering the default once the account had been in arrears for three to four months (within the recommended three to six month window). While Vanquis was required to show forbearance when Mrs S disclosed her situation in May 2025, the firm appropriately referred her to a debt organisation. The ombudsman concluded that even if forbearance measures had been extended, the account would ultimately have defaulted anyway given Mrs S could not afford to pay and arrears continued to accrue. The default registration is a factual record of account management, not a punitive measure, and the reasons why Mrs S could not pay do not factor into whether the default should be recorded.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website