Upheld: unfair credit reporting and default marker; provision of misleading information complaint against Hutchison 3G UK Limited trading as 3

Decision detail

Summary

Miss B complained that Three unfairly recorded a default marker on her credit report for a fixed sum device plan loan taken out in October 2024. When Miss B called Three in February 2025 asking about arrears messages, an agent incorrectly told her all her accounts were up to date and advised her to ignore the messages as potential fraud. Relying on this misleading advice, Miss B ignored subsequent default and termination notices. The ombudsman found that Three's incorrect information caused Miss B's non-response and that she had demonstrated willingness to resolve payment problems. The complaint was upheld, requiring Three to remove the default marker, bring the account back from debt collection, establish a repayment plan, and pay £100 compensation.

The Ombudsman's reasoning

The ombudsman found that Three's agent provided Miss B with incorrect information in February 2025, telling her that all her accounts including her daughter's were fully up to date and advising her to ignore messages about debt as potential fraud. This misleading advice was the direct cause of Miss B ignoring subsequent default and termination notices. The ombudsman concluded that Miss B had demonstrated willingness and ability to resolve payment problems throughout the contract and would have entered into a payment plan if correctly informed. Therefore, reporting a default marker does not fairly reflect Miss B's conduct and should be removed.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website