Not upheld: Credit file / adverse marker disputes complaint against Loans 2 Go Limited

Decision detail

Summary

Mr A complained that Loans 2 Go Limited wrongfully defaulted his loan account. Mr A took out a £1,000 loan in May 2024 but failed to make payments after June 2024, citing login difficulties. Loans 2 Go issued a default notice on 23 September 2024 requiring arrears repayment by 18 October 2024. Mr A made a faster payment on 18 October 2024, but it was not received until 21 October 2024, after the deadline. The ombudsman found no evidence of error by Loans 2 Go and determined the default was validly issued and accurately recorded, as Mr A was responsible for ensuring timely payment and had been given fair notice of the consequences. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman determined that Loans 2 Go was obliged to ensure Mr A's credit file accurately reflected his payment history in accordance with ICO guidance. The firm responded promptly to Mr A's login issues and provided alternative payment methods. The default notice was validly issued within ICO timescales and Mr A had ample notice that arrears were due by 18 October 2024. Although Mr A made a faster payment on 18 October 2024, it was not received until 21 October 2024, after the deadline. There was no evidence that Loans 2 Go caused the delay. Mr A was responsible for ensuring timely payment and had been given fair notice of the consequences of non-compliance. The ombudsman rejected the argument that Loans 2 Go should have proactively advised Mr A about payment method clearing times, particularly given Mr A had ignored most contact attempts. The subsequent pattern of late and missed payments further supported that the default was appropriately recorded.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website