Not upheld: Credit file / adverse marker disputes complaint against AMERICAN EXPRESS SERVICES EUROPE LIMITED

Decision detail

Summary

Mr M complained that AESEL recorded adverse information on his credit file when it shouldn't have, particularly regarding late payment markers applied during his Regain payment plan enrolment. Mr M believed he was told his account would be reported as up to date while in the payment arrangement and that arrears would no longer be reported. AESEL initially agreed to remove certain late payment markers but later declined. The ombudsman found the credit reporting was accurate as it reflected Mr M's actual arrears position (one month frozen during first payment break, three months when entering Regain plan), and that not mentioning arrears during the Regain plan discussion did not require their removal. However, the ombudsman found AESEL provided inadequate service and awarded £100 compensation for the upset caused by unfulfilled promises to amend credit entries and for lack of clarity about arrears reporting.

The Ombudsman's reasoning

The ombudsman found that the credit reporting was accurate as it reflected Mr M's actual account position at each stage. When Mr M entered the payment break in October 2024, arrears were frozen at one month and remained at that level during the break. When entering the Regain plan in February 2025, arrears were at three months and remained at that level until Mr M began repaying them. The ombudsman rejected the argument that not mentioning arrears during the Regain plan discussion meant they should be removed, noting that arrears had accrued before the plan was agreed and provided an accurate reflection of the account. However, the ombudsman found AESEL could have provided better service by giving clearer information about arrears reporting and by failing to implement promised credit file amendments.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website