Not upheld: credit file reporting accuracy complaint against Lowell Portfolio I LTD

Decision detail

Summary

Mr W complained that Lowell Portfolio I LTD incorrectly reported a defaulted account as 'open' with an available credit limit for five years, impacting his credit score and ability to obtain credit. Lowell took over the account in March 2022 and explained the account showed as 'open' due to an outstanding balance. The ombudsman found that neither party could provide clear evidence of what the credit reference agency actually displayed, and Mr W provided no evidence of being denied credit due to the reporting. Without conclusive evidence of an error or demonstrable impact, the ombudsman determined it was more likely than not that Lowell's reporting was accurate and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that without seeing exactly what the credit reference agency was displaying, it was impossible to conclusively determine what was reported. Given that defaulted accounts should not show available credit, the ombudsman concluded it was more likely than not that the reporting was accurate. The ombudsman also noted that even if an error had occurred, Mr W provided no evidence of applying for credit and being rejected due to the reporting error, which would be necessary to establish impact and warrant compensation. The ombudsman's jurisdiction was limited to Lowell's reporting from March 2022 onwards, not the period before they took over the account.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website