Upheld: Credit file / adverse marker disputes complaint against Frasers Group Financial Services Limited trading as Studio

Decision detail

Summary

Mrs R complained that Studio recorded adverse information on her credit file for an account she did not initially recognise. Studio opened a catalogue credit account in Mrs R's name in November 2018 with a £350 limit. The account fell into arrears by October 2020 and was passed to a debt recovery agent. Mrs R discovered the adverse credit file information approximately five years later. The ombudsman found that Studio legitimately opened the account based on evidence including use of Mrs R's personal details, address, goods delivery, and payments from her bank account, and that the debt remained outstanding. However, the ombudsman found Studio failed to treat Mrs R fairly when she first asked for help by not providing sufficient information. Studio was ordered to pay £100 compensation for this poor handling, but the adverse credit file information was to remain as the underlying debt was legitimate.

The Ombudsman's reasoning

The ombudsman found that despite Mrs R's initial non-recognition of the account, the evidence demonstrated she either operated or was aware of the account until it was passed to the agent. The use of her personal details, address, email and telephone number, combined with goods being delivered to her address and payments coming from her bank account, persuasively showed Mrs R gave her authority to open the account. The ombudsman accepted Mrs R's explanation about not using telephone to open the account but found other evidence more persuasive. Studio's decision to pass the account to the agent seven months after the last payment was reasonable given Mrs R did not contact them or request help. However, Studio failed to treat Mrs R fairly when she first asked for help by not providing sufficient information about the account.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website