Partially upheld: Credit file / adverse marker disputes complaint against The Mortgage Works (UK) Plc

Decision detail

Summary

Mr and Mrs K complained that TMW incorrectly reported their mortgage to credit reference agencies as in arrears when payment arrangements were in place, on two separate occasions in 2024-2025. They claimed this caused financial loss by preventing them obtaining a £35,000 buy to let mortgage and business bank account facilities. TMW paid £250 in compensation and corrected the reporting. The ombudsman upheld the complaint in part, finding the errors caused upset and inconvenience but rejecting claims of financial loss, as it was unlikely the additional borrowing or term extension would have been approved even with correct reporting, given Mr and Mrs K's inability to maintain payments without additional borrowing.

The Ombudsman's reasoning

While TMW made clear reporting errors, the ombudsman found it unlikely that Mr and Mrs K would have been offered additional buy to let borrowing or a term extension even with correct reporting, given they had struggled to maintain payments since April 2024 and could only afford payments through additional borrowing. The buy to let lenders would likely have had affordability concerns regardless of the credit file error. For the business bank account, neither declining bank cited mortgage arrears as the reason, and banks have different criteria. However, the reporting errors did cause upset and inconvenience during a stressful period when Mr and Mrs K were starting a business and trying to sell their property.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website