Upheld: loan administration errors, credit file mismanagement, poor communication complaint against Mitsubishi HC Capital UK PLC, trading as Novuna Personal Finance

Decision detail

Summary

Mr R obtained a £4,000 fixed sum loan from Novuna Personal Finance to purchase furniture in April 2025. The loan agreement was set up incorrectly twice, resulting in multiple credit file searches, and the sofa was installed with defects. Although the correct loan agreement was eventually established in August 2025 and the sofa issues were resolved, Mr R experienced delays in credit file corrections and poor communication from Novuna Personal Finance. The ombudsman upheld the complaint and ordered Novuna Personal Finance to pay an additional £100 compensation (beyond the £50 already provided) for the distress and inconvenience caused by these combined failures.

The Ombudsman's reasoning

The ombudsman found that both the supplier and Novuna Personal Finance had recognised failings in their dealings with Mr R. The loan agreement was set up incorrectly twice, causing additional credit searches, the sofa was installed incorrectly, and there was a delay in updating Mr R about credit file corrections. While credit reference agencies took six to eight weeks to remove the searches, Novuna Personal Finance had reported the removal. Considering the distress and inconvenience caused by the combination of errors, the ombudsman determined that the investigator's recommended additional £100 compensation was fair and reasonable, but rejected Mr R's request for a higher award of approximately £300.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website