Not upheld: Credit file / adverse marker disputes complaint against Vanquis Bank Limited

Decision detail

Summary

Mr R complained that Vanquis Bank Limited unfairly defaulted his credit card account on 27 August 2025, one day after he agreed a repayment arrangement on 26 August 2025 before the Notice of Default deadline. An affordability assessment completed during the call showed Mr R was unemployed with no disposable income, resulting in a £1 per month arrangement being agreed. The ombudsman found the default was fair because the £1 arrangement, while appropriate to Mr R's circumstances, was incapable of materially reducing the arrears or returning the account to contractual terms within a reasonable period. The sustained arrears, earlier failed arrangement, and affordability assessment demonstrated the default accurately reflected the account's status. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman concluded that while a repayment arrangement was agreed before the NOD deadline, the existence of an arrangement alone does not necessarily prevent a default from being recorded. The key question was whether the arrangement was realistically capable of addressing the arrears and bringing the account back within contractual terms. The £1 monthly payment, while appropriate given Mr R's financial circumstances, was incapable of materially reducing the arrears within a reasonable period. The sustained arrears, the earlier failed arrangement, and the affordability assessment showing no disposable income meant the default fairly reflected the account's status. Although the adviser's communication could have been clearer, this did not affect the fairness of the default decision.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website