Not upheld: Credit file / adverse marker disputes complaint against Madison CF UK Limited trading as 118 118 Money

Decision detail

Summary

Mr S complained that 118 118 Money unfairly defaulted his fixed-sum loan account in 2025. He had taken out a £3,000 loan in May 2024 and fell into arrears, with multiple repayment arrangements agreed but not maintained. After a default notice in September 2025 requiring payment by 3 November 2025, Mr S claimed he was told on 27 October 2025 that the deadline was extended to 22 November 2025, but the firm had no record of this conversation. The ombudsman found the default was fair because the account had been in sustained arrears, agreed arrangements were not maintained, and there was insufficient evidence of a deadline extension, so the complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the principle that credit files should provide an accurate reflection of account management and referenced ICO guidance that accounts should default when between three to six months in arrears. While acknowledging Mr S's engagement and repayment efforts, the ombudsman found these factors alone did not make the default unfair given the sustained arrears and failure to maintain agreed arrangements. The ombudsman found insufficient evidence to support Mr S's claim that the deadline was extended to 22 November 2025, noting that while the absence of a recording should not automatically count against him, the decision must be based on available evidence, and the account notes did not support an extension agreement.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website