Upheld: Credit file / adverse marker disputes complaint against Zilch Technology Limited
Financial Ombudsman decision DRN-6334363 of 2026-06-24T00:00:00+00:00. Credit file / adverse marker disputes complaint against Zilch Technology Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6334363 |
|---|---|
| Decision date | 2026-06-24T00:00:00+00:00 |
| Firm | Zilch Technology Limited |
| Product | Buy-now-pay-later |
| Claim type | Credit file / adverse marker disputes |
| Outcome | Upheld |
| Remedy | Pay Mr M £100 compensation for distress and inconvenience. Amend Mr M's credit file from November 2025 onwards to reflect a payment arrangement rather than arrears. Continue reporting the payment arrangement each month while Mr M maintains the arrangement in line with agreed terms. |
Summary
Mr M complained that Zilch Technology Limited incorrectly reported arrears on his credit file from October 2025 onwards, despite him agreeing a payment arrangement with Zilch's debt collector agent in November 2025. Zilch acknowledged the error in February 2026 and offered £15 compensation, but Mr M was unhappy with this amount and the incomplete correction of his credit file. The ombudsman upheld the complaint, finding that Zilch should have reported the payment arrangement from November 2025 onwards and that its handling of Mr M's enquiries was poor. The ombudsman ordered Zilch to pay £100 compensation and to amend the credit file to reflect the payment arrangement from November 2025 onwards, while continuing to report it each month as long as Mr M maintained the agreed terms.
The Ombudsman's reasoning
The ombudsman found that Zilch made a clear error in reporting arrears instead of a payment arrangement from October 2025 to February 2026. While Mr M would legitimately have had arrears showing for October 2025 (before the arrangement was made), the failure to report the arrangement from November 2025 onwards was incorrect and not a true reflection of how Mr M was managing the debt. Additionally, Zilch's handling of Mr M's enquiries in the February phone call caused further unnecessary upset. The ombudsman considered FOS published guidance on compensation and determined that £100 was fair and reasonable, rejecting both Zilch's £15 offer and the investigator's £100 recommendation as too low initially, but ultimately agreeing £100 was appropriate given the circumstances.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Zilch Technology Limited, all decisions | 77 | 53% |
| Credit file / adverse marker disputes, all decisions | 9,663 | 27% |
| Buy-now-pay-later, all decisions | 569 | 29% |
Source
Read the original decision on the Financial Ombudsman Service website