Upheld: fraud handling and poor service; inadequate verification procedures; failure to suspend recovery actions on disputed fraudulent debt; delayed complaint handling complaint against PROPEL HOLDINGS (UK) LIMITED (trading as Quid Market)

Decision detail

Summary

Miss F reported a short-term loan fraudulently taken out in her name to Quid Market in December 2025. Quid Market failed to properly acknowledge the fraud report, promised but did not deliver written confirmation of the dispute, sent arrears notices despite knowing the debt was fraudulent, made false statements about removing the entry from her credit file, and delayed responding to her complaint beyond required timescales. The ombudsman found that Quid Market's repeated errors, broken promises, and contradictory information caused acute stress and upset to Miss F over many weeks. The ombudsman upheld the complaint and directed Quid Market to pay £275 compensation, finding this fairer than the £75 initially offered.

The Ombudsman's reasoning

While the fraudster bears primary responsibility for the fraud, Quid Market failed in multiple ways: they allowed the loan to be taken out with inadequate verification of mismatched contact details; they failed to acknowledge the initial fraud report; they promised written confirmation of the dispute but did not deliver; they sent arrears notices and credit file entries despite knowing the debt was fraudulently obtained; they made false statements about instructing credit reference agencies; and they delayed responding to complaints beyond required timescales. These repeated errors, broken promises, and contradictory information caused acute stress and upset to Miss F over many weeks, requiring her to spend considerable time and effort to resolve matters that should have been handled properly by Quid Market. The compensation must reflect the cumulative impact of these failures.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website