Not upheld: credit agreement administration, debt collection procedures, communication clarity complaint against Vodafone Limited
Financial Ombudsman decision DRN-6301893 of 2026-05-15T00:00:00+00:00. credit agreement administration, debt collection procedures, communication clarity complaint against Vodafone Limited. Outcome: Not upheld.
Decision detail
| Reference | DRN-6301893 |
|---|---|
| Decision date | 2026-05-15T00:00:00+00:00 |
| Firm | Vodafone Limited |
| Product | credit agreement (fixed sum loan for phone purchase) |
| Claim type | credit agreement administration, debt collection procedures, communication clarity |
| Outcome | Not upheld |
| Remedy | Vodafone to pay £150 to Mr A (as already offered) to account for distress and inconvenience resulting from poor customer service and confusion during communications. |
Summary
Mr A complained about Vodafone's administration of a credit agreement for a phone purchased in February 2023 for approximately £1,200. The account accumulated arrears due to repeated missed and late payments, leading Vodafone to issue a default notice and terminate the agreement in October 2024, with an outstanding balance of £699.48. Mr A claimed he was unaware of the debt because his app showed zero balance and complained about unclear and misleading information regarding which of his multiple credit agreements had been sold to a debt collection agent. The ombudsman found Vodafone acted fairly in following proper default and termination procedures, that Mr A was aware of the debt through annual statements and multiple conversations, and that while communication could have been clearer, no inaccurate information was provided. The £150 compensation offered by Vodafone for the communication issues was deemed fair and reasonable.
The Ombudsman's reasoning
The ombudsman found that Vodafone followed proper procedures in issuing default and termination notices in accordance with ICO guidance. The ombudsman was satisfied that Mr A was aware of the outstanding debt through annual statements and multiple conversations with Vodafone, despite the app showing zero balance. While acknowledging poor communication at times regarding which account was with a DCA, the ombudsman found no evidence of inaccurate or misleading information about what Mr A owed. The £150 compensation was deemed fair for the distress and inconvenience caused by the communication issues.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Vodafone Limited, all decisions | 72 | 34% |
Source
Read the original decision on the Financial Ombudsman Service website