Not upheld: Mortgage administration / arrears handling complaint against Oakbrook Finance Limited trading as Finio Loans

Decision detail

Summary

Mr F complained about how Oakbrook Finance Limited handled his personal unsecured loan account, specifically regarding the registration of a default in August 2025 and the provision of incorrect balance information. Mr F had fallen into arrears shortly after taking out the loan and agreed to multiple payment arrangements with Oakbrook. Due to a system error, Oakbrook provided balance figures that were higher than actually needed because the frozen interest was not reflected in the calculations. The ombudsman found the default was fairly registered in line with ICO guidance given Mr F's four-month arrears and pattern of broken arrangements, and concluded the incorrect figures did not materially disadvantage him since he ultimately paid less interest than originally agreed.

The Ombudsman's reasoning

The ombudsman found that the default was fairly registered in line with ICO guidance, as Mr F was approximately four months in arrears with contractual instalments and had a pattern of broken payment arrangements. The ombudsman concluded that the incorrect balance figures, while disappointing, did not disadvantage Mr F because he was contractually obliged to repay the interest regardless, he did not pay more than owed, and he ultimately benefited from the frozen interest arrangement by paying significantly less interest than originally agreed.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website