Upheld: incorrect advice on settled loan and credit reporting complaint against Barclays Bank UK PLC

Decision detail

Summary

Ms S complained that Barclays treated her unfairly by recording information about a loan settled in August 2011, which she claimed caused her mortgage applications to be declined over years. Barclays took an unnecessary additional payment of £128.78 from Ms S despite the loan being settled in full and final settlement. The ombudsman found no evidence that Barclays reported the loan to Credit Reference Agencies after 2017, therefore could not hold them responsible for declined mortgage applications. The complaint was upheld regarding the unnecessary £128.78 payment and incorrect advice, with the refund and £50 compensation already provided deemed adequate remedy.

The Ombudsman's reasoning

The ombudsman found no evidence that Barclays were reporting the loan to Credit Reference Agencies after 2017, six years post-settlement. Therefore, the loan could not have caused Ms S's declined mortgage applications (assuming applications were not with Barclays). However, the ombudsman agreed that Ms S was not required to make the additional £128.78 payment as the loan was already settled in full and final, and Barclays provided incorrect advice. The £50 compensation for service failures was deemed adequate given the lack of evidence linking the loan reporting to actual mortgage application declines.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website