Not upheld: Default registration and account management complaint against Creation Consumer Finance Limited

Decision detail

Summary

Miss E complained that Creation Consumer Finance Limited unfairly registered a default against her Buy Now Pay Later agreement after she failed to repay within the interest-free period and subsequently missed multiple payments. She claimed Creation failed to provide adequate online account access, support during arrears, and information about credit file impacts, and did not account for her neurodiversity and employment difficulties. The ombudsman found that Creation correctly registered the default in line with ICO guidelines when Miss E was five months in arrears, made 15 contact attempts, offered a payment arrangement, and signposted to debt support. The ombudsman concluded Creation was not aware of Miss E's online access issues or neurodiversity until the complaint was raised, and therefore could not have acted differently. The complaint was not upheld and the default was not removed.

The Ombudsman's reasoning

The ombudsman applied ICO guidelines which permit defaults when an account is at least three months in arrears and expect defaults by six months in arrears. Miss E was five months in arrears when defaulted, within the permitted timeframe. The ombudsman found no evidence that Creation was aware of Miss E's online access issues prior to default, as she did not contact Creation about this and did not raise it during the September call. Creation offered appropriate forbearance through a payment arrangement and signposted to debt support services. Creation explained the credit file impact during the September call. The ombudsman could not reasonably expect Creation to have accommodated Miss E's neurodiversity as it was unaware of this until the complaint was raised.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website