Not upheld: Credit file / adverse marker disputes complaint against Topaz Finance Limited trading as Hessonite Mortgages

Decision detail

Summary

Mr D complained that Hessonite Mortgages unfairly recorded arrears on his buy-to-let mortgage after he stopped making payments in May 2025 following loss of property possession due to third-party takeover and LPA Receiver management. Mr D argued the arrears reporting was unfair as he no longer possessed the property and received no rental income, circumstances he claimed were outside his control. Hessonite maintained it had a duty to accurately report the mortgage account status to credit reference agencies. The ombudsman did not uphold the complaint, finding that Mr D remained contractually responsible for mortgage payments despite losing possession, and that Hessonite's accurate reporting of arrears was reasonable and legally required.

The Ombudsman's reasoning

The ombudsman held that while Mr D's circumstances were difficult, Hessonite had a legal obligation to accurately report the mortgage account status to credit reference agencies. Although Mr D no longer possessed the property, he remained contractually responsible for making monthly payments under the mortgage agreement. His failure to make payments constituted a breach of the mortgage conditions, making it reasonable for Hessonite to report arrears. The ombudsman rejected the argument that circumstances beyond Mr D's control should prevent accurate reporting, as this would be unfair to require Hessonite to misrepresent the account status.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website