Upheld: incorrect credit file reporting, failure to remove fraudulent account information complaint against Nationwide Building Society

Decision detail

Summary

Mr S discovered in March 2025 that Nationwide was reporting two fraudulently opened current accounts and a credit card on his credit file. Nationwide acknowledged the fraud, confirmed Mr S would not be liable for any debts, and promised to remove the adverse information. However, while the credit card was removed in August 2025, the two current accounts remained on his credit file despite Nationwide's commitment. After Mr S complained, Nationwide paid £250 compensation but the information still appeared on his credit file. The ombudsman upheld the complaint, finding that although Mr S could not prove credit applications were declined solely due to Nationwide's error, the firm's failure to remove the information as promised caused unnecessary inconvenience. The ombudsman ordered Nationwide to remove the adverse information and pay an additional £150 compensation.

The Ombudsman's reasoning

While Nationwide efficiently investigated the fraudulent accounts when reported, it failed to remove the adverse information from Mr S's credit file in a timely manner despite promising to do so. Although Mr S claimed credit applications were declined due to the adverse information, insufficient evidence was provided to demonstrate that Nationwide's actions alone prevented him from obtaining credit elsewhere, as adverse information is only one factor in lending decisions. However, Nationwide's failure to remove the information when promised caused unnecessary inconvenience and frustration to Mr S, warranting additional compensation beyond the £250 already paid.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website