Upheld: failure to exercise forbearance and inadequate handling of customer vulnerability complaint against Zilch Technology Limited
Financial Ombudsman decision DRN-6292205 of 2026-05-18T00:00:00+00:00. failure to exercise forbearance and inadequate handling of customer vulnerability complaint against Zilch Technology Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6292205 |
|---|---|
| Decision date | 2026-05-18T00:00:00+00:00 |
| Firm | Zilch Technology Limited |
| Product | running credit account |
| Claim type | failure to exercise forbearance and inadequate handling of customer vulnerability |
| Outcome | Upheld |
| Remedy | Zilch Technology Limited must pay Miss U a total of £100 in compensation. If Zilch has already paid the initial £20, it must pay a further £80. If it has not paid the initial £20, it must pay £100. |
Summary
Miss U complained to Zilch about its handling of her financial difficulties and failure to acknowledge her vulnerabilities. On 10 November 2025, she contacted Zilch via live chat to report difficulty making her monthly payment and was offered a 30-day payment pause. However, there was a delay in implementing the pause, resulting in attempted payments and deactivation of her debit card. Miss U had to chase the matter and repeat information she had already provided, despite suffering from a medical condition. Zilch offered £20 compensation, but the ombudsman found this insufficient given the circumstances and upheld the complaint, ordering total compensation of £100.
The Ombudsman's reasoning
While Zilch's initial response to Miss U's request for forbearance was fair and reasonable, the delay in implementing the payment pause and requiring Miss U to repeat information she had already provided caused additional distress. Although Zilch was not initially aware of Miss U's medical condition, the fact that she had to chase matters and repeat information given her particular circumstances warrants additional compensation beyond the £20 already offered. The £20 compensation does not adequately reflect the inconvenience and distress caused.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Zilch Technology Limited, all decisions | 76 | 53% |
Source
Read the original decision on the Financial Ombudsman Service website