Not upheld: Credit file / adverse marker disputes complaint against TSB Bank plc

Decision detail

Summary

Mr F complained that TSB Bank plc unfairly recorded a default on his credit file following an unarranged overdraft that began in September 2025 when a £1,087.66 transaction exceeded his account limit. The account remained overdrawn for approximately four months until TSB recorded a default on 16 January 2026. Mr F argued he was not clearly informed that a default would be recorded, that some written communications were unclear, and that his personal circumstances (unemployment and receipt of benefits) were not adequately considered. The ombudsman found the default was fair and reasonable because the account remained in sustained arrears for approximately four months (within ICO guidance), TSB provided adequate warnings through multiple letters including a November 2025 letter specifically mentioning default, and TSB had offered repayment arrangements and an I&E assessment which Mr F declined. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that TSB's decision to record a default was fair and reasonable because: (1) the account remained in sustained unarranged overdraft for approximately four months, which falls within ICO guidance of three to six months before default; (2) TSB provided adequate warnings through multiple letters, including a November 2025 letter specifically mentioning default as a consequence; (3) while individual communications may not have been perfectly clear, TSB's communications as a whole made Mr F reasonably aware of the consequences; (4) Mr F's £100 payment did not constitute an agreed arrangement that would prevent default; (5) TSB's failure to adequately explore Mr F's circumstances during the December 2025 call was addressed through compensation, but this did not affect the fairness of the subsequent default reporting, particularly as TSB offered an I&E assessment in January 2026 which Mr F declined; and (6) by January 2026, the account had been substantially overdrawn for several months with no agreed repayment arrangement.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website