Upheld: unfair credit file reporting and service failures in correcting errors complaint against Nationwide Building Society
Financial Ombudsman decision DRN-6308437 of 2026-04-28T00:00:00+00:00. unfair credit file reporting and service failures in correcting errors complaint against Nationwide Building Society. Outcome: Upheld.
Decision detail
| Reference | DRN-6308437 |
|---|---|
| Decision date | 2026-04-28T00:00:00+00:00 |
| Firm | Nationwide Building Society |
| Product | personal loan |
| Claim type | unfair credit file reporting and service failures in correcting errors |
| Outcome | Upheld |
| Remedy | Nationwide Building Society to pay Miss W £450 in additional compensation (on top of £1,895 already paid). Total compensation: £2,345. |
Summary
Miss W complained that Nationwide Building Society acted unfairly in reporting her personal loan to Credit Reference Agencies. After Nationwide made an error changing her payment date in February 2024, her account fell into arrears and her credit file reflected incorrect adverse information for over two years. Although Nationwide agreed to rewrite the loan and correct the credit file, it failed to do so promptly, with the issue not fully resolved until March 2026. Nationwide had already paid £1,895 in compensation for the initial errors but offered only £250 for a further three-month delay in correcting the credit file. The ombudsman upheld the complaint and ordered Nationwide to pay an additional £450, rejecting Miss W's demands for loan write-off and £8,000 compensation, while also finding insufficient evidence to hold Nationwide responsible for mortgage application impacts.
The Ombudsman's reasoning
The ombudsman accepted that Nationwide's service failings were not in dispute. The key issue was determining fair compensation for the impact on Miss W. The ombudsman found that while Miss W had already received £1,895 in compensation for the initial errors, Nationwide's failure to correct the credit file as agreed caused a further three-month delay that compounded the distress. The ombudsman rejected Miss W's claim for loan write-off and £8,000 compensation, noting she had benefited from the borrowed funds and must repay them with interest. The ombudsman also rejected the claim for additional interest refunds from August 2025 onwards. However, the ombudsman found Nationwide's offer of £250 for the three-month delay insufficient given the context of prior failures. The ombudsman rejected Miss W's claim regarding mortgage impact as she had not actually applied and therefore it could not be established that the credit file was the sole reason for any decline.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Nationwide Building Society, all decisions | 13,251 | 21% |
Source
Read the original decision on the Financial Ombudsman Service website