Not upheld: Credit file / adverse marker disputes complaint against Vanquis Bank Limited

Decision detail

Summary

Mr D complained that Vanquis Bank unfairly registered a default on his credit card account after he cancelled his direct debit and missed payments, and then failed to remove it after incorrectly telling him it would. The account fell into arrears from May to September 2025, during which time Mr D was frequently away from home. Vanquis sent payment overdue letters in May, June and July 2025, a default notice in August 2025, and recorded a default in September 2025. Mr D disputed receiving the letters and argued Vanquis should have contacted him by email instead. After Mr D settled the outstanding balance, Vanquis incorrectly told him the default would be removed, later clarifying only the account status would be updated. The ombudsman found Vanquis acted fairly in registering the default and that the £50 compensation for the incorrect information was reasonable, rejecting Mr D's complaint.

The Ombudsman's reasoning

The ombudsman found that Vanquis took reasonable steps to notify Mr D about the arrears through payment overdue letters, a default notice, text messages and emails, all sent to his registered postal address. While Mr D questioned whether the letters were actually received and argued email should have been used, the ombudsman found no regulatory requirement for email communication and that the absence of proof of delivery does not mean letters were not sent. The timing of the default was consistent with ICO guidance (3-6 months in arrears). The ombudsman acknowledged that Vanquis erred in incorrectly telling Mr D the default would be removed, but found this mistake did not invalidate the original default registration decision. The £50 compensation was considered fair for the distress caused by the incorrect information.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website