Not upheld: credit file reporting accuracy; late payment markers complaint against Stellantis Financial Services UK Limited

Decision detail

Summary

Miss P complained that Stellantis Financial Services UK Limited incorrectly applied late payment markers to her credit file since 2021, even though she had made contracted monthly repayments and overpayments while her conditional sale agreement was in arrears. Stellantis maintained that the markers were applied correctly because Miss P's account remained in arrears, with payments being applied to older outstanding sums first under the agreement terms. The ombudsman found that although Miss P made contracted monthly repayments for several months, the total amount paid was insufficient to clear both the arrears and the current monthly payment, meaning the contracted payment remained missed. The ombudsman was satisfied that Stellantis demonstrated forbearance through multiple repayment plans and payment deferrals, and accurately reported Miss P's payment history. The complaint was not upheld, and the ombudsman declined to order removal of the late payment markers.

The Ombudsman's reasoning

The ombudsman found that although Miss P made contracted monthly repayments for several months, the account remained in arrears because payments were applied to older outstanding sums first under the agreement terms. Since the total amount paid each month was insufficient to clear both the arrears and the contracted monthly payment, Stellantis had a duty to report the due payment as missed. The ombudsman was satisfied that Stellantis treated Miss P with due consideration and forbearance by allowing temporary repayment plans, deferment of payments, and reduced amounts. The relationship had not irretrievably broken down as Miss P remained in regular contact with Stellantis. Therefore, Stellantis acted reasonably in reporting accurate information to credit reference agencies.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website