Partially upheld: Credit file / adverse marker disputes complaint against Vanquis Bank Limited

Decision detail

Summary

Mr A complained that Vanquis unfairly defaulted his £4,000 loan account in July 2024 after he fell into arrears and failed to maintain two separate payment plans. Vanquis had communicated clearly about the arrears and consequences, and the default was recorded in line with ICO guidance when Mr A was five months behind. However, the ombudsman found that Vanquis could have provided better customer service given Mr A's disclosed mental health issues, memory problems, and financial difficulties. While the default itself was fair, Vanquis should have taken additional steps such as providing written confirmation of payment plans and signposting to debt advice charities. The complaint was partially upheld and the £75 compensation already paid was upheld as reasonable.

The Ombudsman's reasoning

Vanquis acted in accordance with ICO guidance by recording the default when Mr A was five months in arrears. The firm took reasonable steps to communicate the consequences of non-payment and attempted to support Mr A through payment plans. However, Vanquis could have provided better customer service by taking additional care given Mr A's disclosed vulnerabilities, such as providing written confirmation of payment plans and signposting to debt advice charities. The failure to do so did not excuse Mr A's obligation to pay, but would have improved his experience.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website