Not upheld: unfair credit file reporting complaint against Black Horse Limited trading as Land Rover Financial Services

Decision detail

Summary

Ms F complained that Black Horse Limited unfairly reported her hire purchase agreement as defaulted with an outstanding balance to credit reference agencies after she voluntarily surrendered the financed vehicle in January 2025. Although Black Horse decided in May 2025 to cease pursuing recovery of the remaining shortfall balance after the vehicle was sold at auction, they continued reporting the default and outstanding balance to credit agencies. Ms F argued the account should be reported as settled or closed with a zero balance. The ombudsman found the reporting was accurate and fair because the agreement had fallen into arrears and was not repaid in full, and the cessation of recovery activity did not automatically require the account to be reported as settled. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Black Horse was entitled to record a default and report the remaining balance because the agreement fell into arrears and was not repaid in full. The decision to cease recovery activity did not automatically require the account to be reported as settled or satisfied, as the May 2025 letter made clear this was a cessation of recovery activity rather than confirmation the balance had been repaid or extinguished. While the November 2023 telephone call lacked clarity, the evidence showed Black Horse discussed the possibility of debt write-off or sale to a third party rather than guaranteeing the account would disappear from the credit file. The ongoing reporting was consistent with the position Black Horse had explained to Ms F and broadly reflected the status and history of the agreement.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website