Upheld: unfair fraud prevention marker registration complaint against CREATION CONSUMER FINANCE LIMITED
Financial Ombudsman decision DRN-6301634 of 2026-04-20T00:00:00+00:00. unfair fraud prevention marker registration complaint against CREATION CONSUMER FINANCE LIMITED. Outcome: Upheld.
Decision detail
| Reference | DRN-6301634 |
|---|---|
| Decision date | 2026-04-20T00:00:00+00:00 |
| Firm | CREATION CONSUMER FINANCE LIMITED |
| Product | fixed sum loan |
| Claim type | unfair fraud prevention marker registration |
| Outcome | Upheld |
| Remedy | Creation Consumer Finance Limited must: (1) promptly remove the fraud prevention marker in Mr P's name; (2) pay £200 compensation to Mr P for avoidable distress and inconvenience caused by the marker remaining approximately one year longer than it should have. |
Summary
Mr P complained that Creation Consumer Finance Limited unfairly registered a fraud prevention marker against him for 'no intention to pay' after he missed payments on a fixed sum loan following job loss in June 2024. Creation applied the marker in October 2024 after Mr P failed to respond to arrears communications. When Mr P contacted Creation in January 2025 to explain his financial difficulties resulting from unemployment, Creation did not reconsider the marker. The ombudsman found that while the initial marker application was fair, Creation should have explored Mr P's circumstances when he made contact and removed the marker, as evidence showed he was unable to pay rather than unwilling. The ombudsman upheld the complaint, ordering removal of the marker and £200 compensation for avoidable distress and inconvenience caused by the marker remaining approximately one year longer than appropriate.
The Ombudsman's reasoning
The ombudsman found that while Creation's initial decision to apply the fraud prevention marker in October 2024 was fair based on missed payments and lack of contact, the marker should have been reconsidered when Mr P contacted Creation in January 2025 to explain his financial circumstances. The credit search data and Mr P's employment history demonstrated that his inability to pay resulted from sudden job loss and financial hardship across multiple accounts, not from an intention to avoid repayment. The subsequent repayment arrangement further evidenced Mr P's genuine intention to repay. Creation should have explored Mr P's circumstances more thoroughly when he made contact and removed the marker as part of complaint resolution. However, the ombudsman rejected claims that the marker caused Mr P's job loss, prevented bank account opening in July 2025, or prevented house sale, as these could not be fairly attributed solely to the marker.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| CREATION CONSUMER FINANCE LIMITED, all decisions | 60 | 17% |
Source
Read the original decision on the Financial Ombudsman Service website