Upheld: data handling error, incorrect data linkage, impact on credit applications complaint against Barclays Bank UK PLC (trading as Barclaycard)

Decision detail

Summary

Mr J complained that Barclaycard incorrectly linked his personal data to another customer with a similar name, an issue first raised in 2014 that re-occurred in 2025 following a data migration. The error resulted in at least one credit application being declined and caused Mr J distress and concern about his credit standing. Barclaycard accepted the error, apologised, and offered £500 compensation. The ombudsman upheld the complaint but found the impact was limited, as Mr J's credit file showed no adverse information and he had successfully obtained credit with other lenders, making the £500 compensation fair and reasonable.

The Ombudsman's reasoning

The ombudsman accepted that Barclaycard made a clear error in incorrectly linking Mr J's data to another customer and that this caused distress and inconvenience. However, the ombudsman found the impact was limited in scope and duration based on objective evidence: Mr J's credit file showed no adverse information, no adverse data was reported externally by Barclaycard, and Mr J successfully obtained credit with other lenders. While the re-emergence of the issue in 2025 was frustrating, the ombudsman found no evidence of lasting or widespread financial harm. The ombudsman concluded that £500 compensation was fair and reasonable to reflect the distress and inconvenience caused.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website