Not upheld: inaccurate credit file reporting / administrative error in updating default date complaint against Lowell Portfolio I Ltd

Decision detail

Summary

Ms H complained that Lowell Portfolio I Ltd was reporting an incorrect default date on her credit file (31 January 2020 instead of 26 September 2019) and that two defaults were being reported. Lowell had been instructed by the original lender V on 4 May 2021 to correct the date but failed to notify the CRAs until 2024. Ms H discovered the error on 3 April 2024 and requested compensation of £200-£300, arguing the prolonged inaccuracy caused distress and impacted her creditworthiness. The ombudsman found Lowell's error was a minor administrative issue with limited impact, as Ms H was only aware of it for approximately one month and provided no evidence of credit denial resulting from the incorrect date. The ombudsman upheld Lowell's original offer of £50 compensation as fair and reasonable.

The Ombudsman's reasoning

While Lowell made an error in failing to update the CRAs with the correct default date from May 2021 to 2024, the ombudsman found the impact on Ms H was limited. Ms H was unaware of the error until 3 April 2024, meaning her actual awareness period was only about one month. The ombudsman rejected Ms H's claim of lending detriment as she provided no evidence of credit applications being declined due to the incorrect date, and found the existence of the default itself would be a more decisive factor than a three to four month date discrepancy. The ombudsman also found Lowell did not act wrongly in sending correspondence to the address Ms H had confirmed in recent phone calls, and that Lowell had no obligation to check the address on the credit file.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website