Not upheld: misleading information about credit file reporting following debt settlement complaint against PRA Group (UK) Limited

Decision detail

Summary

Mrs P complained that PRA Group misled her about how her debt would be reported to credit reference agencies after she paid a settlement of 90% of the balance in December 2023. PRA's adviser told her the account would show as 'fully satisfied', but it later showed as 'partially satisfied', affecting her mortgage applications. Although PRA acknowledged the error and offered £50 compensation, Mrs P rejected this. The ombudsman found the complaint not upheld, concluding that Mrs P had received clear information in PRA's November 2023 letter that settlement would not be as positive as full payment, and the incorrect information given during the phone call did not induce her payment decision since it was provided after she had already decided to pay.

The Ombudsman's reasoning

The ombudsman found that although PRA gave incorrect information during the December 2023 phone call, this did not induce Mrs P into making the payment. Mrs P had received clear information in the November 2023 letter that a settlement payment would not be as positive as paying the full balance. Mrs P did not ask about credit file impact before making the payment, and the incorrect information was given after the payment decision was made. The ombudsman concluded the error had minimal impact and constituted only a small administrative error.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website