Not upheld: Credit file / adverse marker disputes complaint against Brachers Llp
Financial Ombudsman decision DRN-8603840 of 2019-03-19T00:00:00+00:00. Credit file / adverse marker disputes complaint against Brachers Llp. Outcome: Not upheld.
Decision detail
| Reference | DRN-8603840 |
|---|---|
| Decision date | 2019-03-19T00:00:00+00:00 |
| Firm | Brachers Llp |
| Product | Other regulated product |
| Claim type | Credit file / adverse marker disputes |
| Outcome | Not upheld |
| Remedy | £100 compensation cheque (already offered by Brachers; ombudsman confirmed this was fair and noted Brachers was sending a replacement cheque as the original was uncashed and out of date) |
Summary
Mr G complained that Brachers LLP gave him incorrect information about a debt payment arrangement, specifically that £100 monthly payments would not adversely affect his credit file and that the debt would be cleared in 36 months. His credit file was subsequently marked with the payment arrangement details, and interest and charges were not frozen as he believed. While Brachers acknowledged the information was not wholly correct and offered £100 compensation, the ombudsman found Mr G would likely have entered a payment arrangement regardless because he indicated inability to pay the full balance, and monthly statements clarified within two months that interest was being applied. The complaint was not upheld, and the £100 compensation was deemed fair and reasonable.
The Ombudsman's reasoning
The ombudsman found that while Brachers provided unclear information, Mr G would likely have entered into a payment arrangement regardless because he indicated he could not pay the full balance. The payment schedule, though ambiguous, did not result in financial loss because monthly statements clearly showed interest was being applied within two months, so any misunderstanding was short-lived. Since Mr G suffered no actual financial loss or detriment as a direct consequence of Brachers' error, the £100 compensation offered was fair and reasonable.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Brachers Llp, all decisions | 4 | 38% |
| Credit file / adverse marker disputes, all decisions | 9,408 | 27% |
| Other regulated product, all decisions | 51,105 | 30% |
Source
Read the original decision on the Financial Ombudsman Service website