Partially upheld: credit reporting and arrears handling complaint against ZILCH TECHNOLOGY LIMITED trading as Zilch

Decision detail

Summary

Ms T complained that Zilch continued to report missed payments on her credit file despite her arranging with debt recovery agent N to repay arrears over time during 2025. After Ms T settled the account in October 2025, Zilch initially showed an outstanding balance, causing further frustration. Zilch offered £30 compensation and an apology. The ombudsman found Zilch's adverse reporting during the repayment period was reasonable as the account was not fully current, but directed Zilch to update October 2025 as up to date since that was when Ms T made her final payment on 13 October 2025. The £30 compensation was upheld as adequate remedy.

The Ombudsman's reasoning

The ombudsman found it reasonable for Zilch to report the account as not up to date during the repayment period, as the account was not fully current until arrears were completely paid. The full credit file appropriately reflected an arrangement to pay, which fairly represented Ms T's engagement and commitment. However, since Ms T made her final payment on 13 October 2025, it was reasonable to require Zilch to update reporting to show October 2025 as up to date. Zilch's explanation to Ms T during enquiries was fair, and the short-term frustration from the post-settlement confusion was adequately covered by the apology and £30 compensation already offered.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website