Not upheld: Unfair default and account sale; data sharing complaint against Creation Consumer Finance Limited

Decision detail

Summary

Mr V complained that Creation Consumer Finance Limited unfairly defaulted his Running Account Credit Agreement and sold his account to a third party. Mr V was in sustained arrears and had agreed multiple payment arrangements that he failed to maintain. Creation issued a notice of default in November 2024 and defaulted the account in December 2024, then sold the outstanding balance in April 2025. Mr V objected to receiving the default notice by post while abroad, claimed inadequate support was offered given his health conditions, and disputed the sale occurring while his complaint was open. The ombudsman found Creation complied with ICO guidance on default registration, properly issued required written notice, acted within contractual terms when sharing data and selling the account, and was reasonable in its actions. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found Creation complied with ICO guidance which permits default registration when a consumer is at least three months in arrears and expects registration by six months. Mr V was in sustained arrears and failed to maintain agreed payment arrangements. The notice of default was properly issued in writing as required by regulation, and Mr V was reasonably aware of his outstanding balance. Creation acted within the contractual terms when sharing data and selling the account. The ombudsman found no evidence Creation was wrong to proceed with the sale despite the complaint being raised, as the decision to sell predated the complaint.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website