Upheld: incorrect credit file reporting complaint against Volkswagen Financial Services (UK) Limited

Decision detail

Summary

Mr H complained that VWFS incorrectly reported his hire purchase account on his credit file since 2019 following voluntary termination in 2018, negatively impacting his credit score. VWFS initially reported more than six missed payments but amended this to three. The ombudsman found that VWFS should have defaulted the account when establishing a payment arrangement, which would have resulted in automatic removal after six years. VWFS has now deleted the account from Mr H's credit file and paid £650 compensation, resolving the complaint.

The Ombudsman's reasoning

The ombudsman agreed with the investigator's recommendation that the account should be removed from Mr H's credit file, as defaulting the account in 2018 would have been fairer and would have been automatically removed after six years. VWFS has taken the required action to delete the account and paid the recommended compensation of £650. Although the account was briefly re-reported in April 2026, it has since been removed again, providing an end point to the issues.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website