Not upheld: Goods and services under S75 complaint against Barclays

Decision detail

Summary

Mr D complained that Barclays unfairly reported adverse credit information to CRAs while his complaint about a disputed transaction was being investigated by FOS. The dispute arose when Barclays reversed a temporary credit it had applied during its investigation, leaving Mr D's account overdrawn by approximately £300 without an arranged overdraft facility. Barclays reported the account as being in arrears in February 2025 and defaulted it on 31 July 2025 after six months without payment. The ombudsman found that Barclays acted fairly, as the ICO guidance does not prohibit adverse reporting during complaint investigations, the information was accurate, and Barclays provided adequate notice and payment options through multiple letters. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the ICO guidance on credit reporting as a benchmark for fair practice. The guidance does not prohibit reporting adverse information while a complaint is under investigation with FOS. The account was genuinely overdrawn and Mr D was obliged to repay under the account terms. Barclays provided adequate notice through multiple letters explaining the situation, consequences, and payment options. The default was applied after six months in arrears, which the ombudsman considered reasonable. The information reported was accurate and fair.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website