Not upheld: mishandling of financial hardship request, administrative errors in direct debit collection, credit file reporting accuracy complaint against Creation Financial Services Limited
Financial Ombudsman decision DRN-6367993 of 2026-05-18T00:00:00+00:00. mishandling of financial hardship request, administrative errors in direct debit collection, credit file reporting accuracy complaint against Creation Financial Services Limited. Outcome: Not upheld.
Decision detail
| Reference | DRN-6367993 |
|---|---|
| Decision date | 2026-05-18T00:00:00+00:00 |
| Firm | Creation Financial Services Limited |
| Product | revolving credit |
| Claim type | mishandling of financial hardship request, administrative errors in direct debit collection, credit file reporting accuracy |
| Outcome | Not upheld |
| Remedy | £350 compensation for distress and inconvenience caused by Creation's errors in attempting to collect direct debits inappropriately and the technical issues with payment collection. Removal of the late payment fee and the missed payment marker for June 2025 from the credit file. |
Summary
Ms S complained to Creation Financial Services Limited about how it handled her financial hardship request in 2025, including errors in collecting direct debits and the reporting of her accounts to credit reference agencies. Creation had already accepted responsibility for errors including attempting to collect a direct debit when an account was in a payment arrangement and technical issues preventing proper payment collection. Creation removed associated fees and missed payment markers, and offered £350 compensation. The ombudsman found that the credit file now accurately reflects Ms S's account history and that the compensation offered is fair, declining to uphold the complaint despite Ms S's concerns about delays in corrections and alleged financial detriment.
The Ombudsman's reasoning
The ombudsman found that while Creation made multiple errors in collecting direct debits, the credit file now provides an accurate reflection of Ms S's account history, showing both the period of financial difficulty and the subsequent steps taken to reduce arrears. Although Ms S raised concerns about delays in correcting information and potential financial detriment, she did not provide clear evidence of actual loss. The ombudsman concluded that the £350 compensation offered by Creation is fair and reasonable for the distress and inconvenience caused by the errors, and that no further remedy is warranted.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Creation Financial Services Limited, all decisions | 369 | 47% |
Source
Read the original decision on the Financial Ombudsman Service website