Upheld: poor customer service, failure to provide clear information, inadequate communication complaint against ZILCH TECHNOLOGY LIMITED
Financial Ombudsman decision DRN-6366749 of 2026-06-08T00:00:00+00:00. poor customer service, failure to provide clear information, inadequate communication complaint against ZILCH TECHNOLOGY LIMITED. Outcome: Upheld.
Decision detail
| Reference | DRN-6366749 |
|---|---|
| Decision date | 2026-06-08T00:00:00+00:00 |
| Firm | ZILCH TECHNOLOGY LIMITED |
| Product | Buy-now-pay-later |
| Claim type | poor customer service, failure to provide clear information, inadequate communication |
| Outcome | Upheld |
| Remedy | £75 compensation for distress and inconvenience |
Summary
Miss W complained about poor customer service from ZILCH TECHNOLOGY LIMITED regarding a £5 monthly reduced repayment plan she set up. Her complaints included difficulty setting up manual repayments (Z only offered automatic collection), receiving missed payment notifications despite being on track with her plan, not receiving a clear answer to her request for a settlement figure, and experiencing poor chat support with agents closing enquiries prematurely and lacking continuity. The investigator agreed Z's customer service was poor and recommended £75 compensation, which Miss W accepted. Z disagreed, arguing the information was in its terms and conditions. The ombudsman upheld the complaint, finding Z failed to clearly explain its requirements when specifically asked, did not manage expectations about missed payment notifications, and provided inadequate support particularly given Miss W's disability-related communication needs.
The Ombudsman's reasoning
The ombudsman found that while Z's terms and conditions stated automatic payment collection was required, Z failed to clearly explain this to Miss W when she specifically enquired about manual repayments, causing avoidable frustration. Z did not adequately manage Miss W's expectations by failing to clearly explain in advance that she would receive missed payment notifications despite being on track with her reduced repayment plan. Z failed to clearly answer Miss W's straightforward request for a settlement figure. Additionally, Z's chat service lacked continuity, with agents closing enquiries prematurely and requiring Miss W to repeat herself, which was particularly problematic given her disability-related need to communicate in writing. These failures breached the FCA Consumer Duty requirement to provide customers with information they need, at the right time, and in a way they can understand.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| ZILCH TECHNOLOGY LIMITED, all decisions | 76 | 53% |
| Buy-now-pay-later, all decisions | 576 | 28% |
Source
Read the original decision on the Financial Ombudsman Service website