Upheld: incorrect credit file reporting; unfair credit markers complaint against Santander UK Plc

Decision detail

Summary

Miss E complained that Santander incorrectly reported arrears and a default on her credit file despite repaying her overdraft as agreed. Although Santander removed the default, they retained missed payment markers. Miss E, described as vulnerable, subsequently struggled to obtain a mortgage and hired a specialist broker for £1,499. The ombudsman upheld the complaint regarding the credit markers and awarded £300 compensation, but rejected the broker fee claim due to insufficient evidence that it arose solely from Santander's credit reporting rather than other factors such as time pressure.

The Ombudsman's reasoning

The ombudsman upheld the complaint regarding credit file markers and compensation, as Santander's reporting was incorrect. However, the broker fee claim was rejected because there was insufficient evidence that Miss E was forced to use the specialist broker solely due to Santander's credit reporting. While the missed payment markers were confirmed on the credit file, no evidence from mortgage lenders or other brokers demonstrated that applications were rejected specifically because of Santander's reporting. The ombudsman acknowledged Miss E's need for speed and other financial considerations likely influenced her decision to use the broker.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website