Not upheld: Credit file / adverse marker disputes complaint against HSBC UK Bank Plc

Decision detail

Summary

Miss S complained that HSBC applied defaults to her credit accounts later than they should have been, arguing that prolonged arrears reporting created a more damaging credit profile than earlier defaults would have. She had entered into repayment arrangements from June 2022 onwards, with new arrangements agreed in November 2022 lasting until May 2023, when they failed and defaults were recorded. The ombudsman found HSBC acted appropriately by managing the accounts with forbearance toward a vulnerable customer with a health condition, and that any delay in recording defaults was consistent with regulatory obligations to treat her fairly. The complaint was not upheld and no remedy was ordered.

The Ombudsman's reasoning

The ombudsman found that HSBC's timing of defaults was appropriate given the circumstances. The accounts were managed on the basis of expected improvement rather than accepted breakdown until arrangements ended in May 2023. HSBC's reporting reflected the information available at the time and was not inaccurate or unfair. Any delay appeared to be with a view to assisting Miss S through forbearance, which is consistent with regulatory obligations to treat vulnerable customers fairly. The ICO guidance allows for different approaches when circumstances warrant, and the ombudsman found HSBC's approach was not contrary to regulatory expectations.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website