Partially upheld: credit file reporting accuracy and arrears handling complaint against Bank of Scotland plc trading as Halifax

Decision detail

Summary

Mr and Mrs O complained that Halifax incorrectly reported missed payments on their mortgage credit files for an extended period in 2025, preventing them from obtaining a new mortgage to downsize their property. They had taken a three-month nil payment plan from December 2024 to February 2025 and then resumed payments, but Halifax continued reporting missed payments until October 2025 when arrears were consolidated. The ombudsman found Halifax's reporting was legally accurate as arrears remained outstanding, but upheld the complaint in part by requiring Halifax to record an arrangement to pay for the nil payment plan period and pay £75 compensation, as this notation should have been made to show other lenders that customers had engaged with their lender.

The Ombudsman's reasoning

The ombudsman found that Halifax had a legal obligation to report accurate information to credit reference agencies. While Mr and Mrs O were on the nil payment plan, missed payments should have been recorded as the account was in arrears. After the plan ended and payments resumed, the arrears remained outstanding until consolidation on 9 October 2025, so continued reporting of missed payments was accurate and required. However, Halifax should have recorded an arrangement to pay on the credit files for December 2024 to February 2025 to show other lenders that the customers had engaged with their lender. The ombudsman found Halifax provided adequate information about the consequences of the nil payment plan through both the call and follow-up letter, and did not downplay the long-term impact on credit files.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website