Not upheld: data breach and inadequate remedy for distress caused complaint against Lantern Debt Recovery Services Limited

Decision detail

Summary

Miss C complained that Lantern Debt Recovery Services Limited failed to adequately remedy a data breach in which her personal data was accessed during an April 2025 IT security incident. Lantern offered a complimentary twelve-month credit monitoring and fraud protection subscription service, which Miss C rejected, seeking monetary compensation instead for the worry and anxiety caused. The ombudsman found that Lantern acted promptly to contain the breach, conducted a thorough investigation, and provided a comprehensive monitoring service that effectively protected Miss C from future harm. The ombudsman determined that the monitoring service was a fair and appropriate remedy and declined to award additional compensation, as the service went as far as possible to restore Miss C to her pre-incident position.

The Ombudsman's reasoning

The ombudsman assessed whether Lantern's remedy fairly put Miss C back in the position she would have been in but for the incident. The ombudsman found that Lantern acted promptly to contain the breach, conducted a thorough investigation, notified relevant regulators, and provided a comprehensive monitoring service with online scanning and specialist support. The ombudsman concluded that the monitoring service was more effective than monetary compensation in protecting Miss C from future harm and worry, and that the regulator (ICO) had accepted the timeline for notification. Therefore, no additional remedy was necessary.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website