Not upheld: credit file reporting and refusal to amend late payment markers complaint against HSBC UK Bank PLC

Decision detail

Summary

Mr K complained that HSBC added late payment markers to his credit file following missed payments during a period of temporary housing instability and income fluctuation between November 2024 and January 2025. Although Mr K brought payments up to date and has managed the account well since January 2025, HSBC refused to amend the credit file, citing its policy that amendments are only made where the firm has made an error. The ombudsman upheld HSBC's position, finding that the firm correctly reported accurate information and made no error, and that while businesses may amend credit files as a goodwill gesture, FOS cannot require them to do so or change their policies. The ombudsman suggested Mr K consider adding a Notice of Correction to his credit file instead.

The Ombudsman's reasoning

The ombudsman found that HSBC correctly reported accurate information about missed payments to credit reference agencies and made no error. While the ombudsman acknowledged Mr K's financial difficulties were temporary and outside his control, this does not create an obligation for HSBC to amend the credit file. The ombudsman noted that many consumers experience missed payments due to circumstances beyond their control and that adverse credit information commonly impacts refinancing ability. The ombudsman confirmed that FOS can only require credit file amendments where there is clear evidence of an error, and that while businesses may amend files as a goodwill gesture, FOS cannot require them to change their policies.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website