Not upheld: default registration and credit file reporting complaint against Vanquis Bank Limited

Decision detail

Summary

Mrs A complained that Vanquis Bank Limited incorrectly recorded a default on her credit file. After missing three consecutive months of payments on her credit card, Vanquis issued a Default Notice on 10 January 2024 requiring payment of £162.45 by 7 February 2024. Mrs A made a payment of £94 on 5 February 2024, claiming the mobile app showed this as the minimum payment due due to a technical issue. The account was defaulted on 8 February 2024 when the full arrears were not paid. Mrs A subsequently cleared the balance but the default remained on her credit file for six years. The ombudsman found that Vanquis complied with all regulatory requirements, the Default Notice was properly issued and delivered, there was no evidence of app technical issues, and Mrs A was given adequate opportunity to remedy the breach.

The Ombudsman's reasoning

The ombudsman applied ICO guidance which permits defaulting when a customer is 3 months in arrears and requires a Default Notice giving at least 14 days to remedy the breach. Vanquis complied with these requirements by issuing the Default Notice on 10 January 2024 with a deadline of 7 February 2024. The Default Notice was sent to Mrs A's registered address, and it is the customer's obligation to notify the lender of address changes. The ombudsman found no evidence of technical issues with the mobile app and noted that even if such issues existed, Mrs A should have contacted Vanquis to clarify the discrepancy between the app display and the Default Notice. The payment of £94 was insufficient to prevent the default, and Mrs A was not denied the opportunity to pay the full arrears.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website