Partially upheld: default registration timing and credit file reporting complaint against NewDay Ltd trading as BIP
Financial Ombudsman decision DRN-6264130 of 2026-04-24T00:00:00+00:00. default registration timing and credit file reporting complaint against NewDay Ltd trading as BIP. Outcome: Partially upheld.
Decision detail
| Reference | DRN-6264130 |
|---|---|
| Decision date | 2026-04-24T00:00:00+00:00 |
| Firm | NewDay Ltd trading as BIP |
| Product | credit card |
| Claim type | default registration timing and credit file reporting |
| Outcome | Partially upheld |
| Remedy | NewDay must backdate the default to September 2024, which will result in the default being removed from Miss K's credit file six years from September 2024 rather than six years from March 2025. The ombudsman also suggested Miss K explore adding a notice of correction to her credit file through Citizens Advice Bureau. |
Summary
Miss K complained about NewDay's decision to default her credit card account and report it to her credit file. She discovered the default in March 2025 and immediately offered to clear the balance if NewDay would remove it, but NewDay refused. Miss K explained she had experienced genuine personal difficulties including caring for her grandmother who passed away in September 2024. The ombudsman found that while NewDay correctly followed ICO guidance in registering the default, it should have been registered earlier in September 2024 rather than March 2025, as the account had been in arrears for a considerable time with six missed monthly payments by that date. The complaint was upheld in part, with the ombudsman ordering NewDay to backdate the default to September 2024, but rejecting Miss K's request to remove the default entirely as it accurately reflects how her account was managed in breach of the credit agreement.
The Ombudsman's reasoning
The ombudsman found that while NewDay correctly followed ICO guidance in registering the default, it should have been registered earlier in September 2024 rather than March 2025. By September 2024, the account had been in arrears for a considerable time with six missed monthly payments since the default notice was issued. However, the ombudsman rejected the request to remove the default entirely, finding that the default accurately reflects how Miss K's account was managed in breach of the credit agreement. Although Miss K experienced genuine difficulties including her grandmother's illness and death, and although she demonstrated intention to repay by making payments when able and immediately engaging when she discovered the default, the ombudsman concluded that businesses are obligated under ICO guidance to register defaults after six months of non-payment. The ombudsman noted that NewDay did show some forbearance through a repayment holiday and suspension of interest/charges, but this does not override the obligation to register the default once the agreed arrangement was broken.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| NewDay Ltd trading as BIP, all decisions | 2 | 25% |
Source
Read the original decision on the Financial Ombudsman Service website