Not upheld: Fraud reimbursement (APP scams) complaint against FirstRand Bank Limited trading as MotoNovo Finance

Decision detail

Summary

Mr L complained that MotoNovo failed to honour its commitment to remove his hire purchase agreement entirely from his credit file after accepting it had previously reported inaccurate information. Although MotoNovo had corrected the reporting, paid £650 compensation, and promised complete removal, the agreement remained on Mr L's credit file as settled with zero balance and no adverse information. The ombudsman found that while MotoNovo's failure to deliver the promised remedy constituted poor management, the compensation already paid adequately reflected the distress and inconvenience, and no further action was warranted. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman acknowledged MotoNovo's failure to deliver on its stated commitment to remove the agreement entirely constituted poor management. However, the ombudsman found it would not be fair or reasonable to require deletion of an otherwise accurate record of a genuine credit agreement where the account is correctly shown as settled with zero balance and no adverse information. The compensation already paid was deemed adequate to reflect the distress and inconvenience caused, with no evidence of continuing detriment to justify further action.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website