Not upheld: Credit file / adverse marker disputes complaint against Frasers Group Financial Services Limited

Decision detail

Summary

Miss A complained that Frasers Group Financial Services Limited unfairly recorded a default on her catalogue shopping credit account, arguing the credit agreement was unenforceable because she never received the goods ordered in November 2023. The ombudsman separated this complaint from Miss A's separate dispute about non-delivery and focused on whether FGFS fairly defaulted the account. Finding that Miss A had missed payments and remained in arrears despite payment plans and two breathing space periods, and that she was at least three months behind when the default was registered on 9 June 2025, the ombudsman concluded the default registration was fair under industry guidance and not upheld the complaint.

The Ombudsman's reasoning

The ombudsman distinguished between two separate issues: (1) whether goods were delivered, which was the subject of a separate complaint, and (2) whether FGFS fairly defaulted the account. On the second issue, the ombudsman found that Miss A had entered into a credit agreement requiring monthly payments, she missed payments despite support measures, and industry guidance permits default registration when a consumer is at least three months in arrears. Given the account history and circumstances, the default registration was fair and reasonable.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website