Not upheld: unfair credit reporting during disputed debt complaint against Sky UK Limited

Decision detail

Summary

Mr S complained that Sky UK Limited unfairly reported late payments to Credit Reference Agencies for July and August 2024 while a dispute regarding non-receipt of an Apple iPad keyboard was being considered by the FOS. Mr S had withheld payments during the dispute period, which was ultimately not upheld by the FOS in early 2025. Sky defended the reporting as accurate reflection of payment history, and the FOS investigator agreed. The Ombudsman upheld this decision, finding that Sky clearly communicated the consequences of late payments in the loan agreement and subsequent correspondence, the payments were objectively late, and FCA rules on suspending recovery action during disputes do not apply to disputes about goods receipt. The complaint was not upheld.

The Ombudsman's reasoning

The Ombudsman concluded that Sky acted fairly in reporting the arrears because: (1) the loan agreement clearly set out consequences of missed payments including CRA reporting; (2) Sky provided multiple warnings to Mr S about late payments and credit impact; (3) the payments were objectively late according to the terms and conditions; (4) FCA CONC 7.14.1R provisions for suspending recovery action during disputes only apply to disputes on valid grounds (borrower identity, debt existence, or amount owed), not disputes about goods receipt; (5) the ICO guidance supports reporting accounts in arrears when payments are not made on time; (6) while a query marker might have been an option during the dispute period, it would have reverted to showing arrears after the dispute was resolved against Mr S.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website