Upheld: credit file reporting errors and data accuracy complaint against JAJA FINANCE LTD trading as Asda Money Credit Card

Decision detail

Summary

Mr K complained that Asda Money incorrectly reported missed payments to his credit file after he entered a Debt Relief Order in April 2024, despite never actually missing payments. Asda Money acknowledged a system issue and agreed to correct the reporting, initially offering £100 compensation. However, the matter took approximately 8-9 months to fully resolve, longer than the six to eight weeks initially indicated. Mr K, a vulnerable consumer, disputed whether £100 adequately compensated him for the extended delay and impact. The ombudsman upheld the complaint, finding that while Asda Money had corrected the credit file and refunded incorrectly applied fees, the delay and Mr K's vulnerabilities justified additional compensation. The ombudsman ordered total compensation of £150, which included an additional £50 Asda Money had already agreed to pay.

The Ombudsman's reasoning

The ombudsman found that Asda Money made a system error in reporting missed payments instead of a default when Mr K entered the DRO. While the March 2024 missed payment during breathing space was technically accurate reporting (as Mr K did not make a payment), Asda Money's agreement to remove it as goodwill was acknowledged. The ombudsman was satisfied that Asda Money had corrected the credit file reporting and refunded the incorrectly applied fees. Regarding compensation, the ombudsman considered that £100 was insufficient given the 8-9 month delay and Mr K's vulnerabilities, but that the additional £50 offered by Asda Money brought the total to a fair level of £150, as the incorrect reporting was unlikely to have caused additional harm beyond distress and inconvenience.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website