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FOS decision: Blemain compensate for inaccurate credit reporting

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  • FOS decision: Blemain compensate for inaccurate credit reporting

    complaint

    Mr and Mrs G complain that Blemain Finance Limited (Blemain) recorded inaccurate
    information about them with a credit reference agency. They say that this affected their credit
    rating and that Blemain failed to address their concerns adequately when they complained.
    background

    In November 2012 Mr and Mrs G discovered that there were inaccurate records with a credit
    reference agency relating to their secured loan with Blemain. They believed that those
    inaccuracies had led another bank to reject their application for a loan.

    They complained to Blemain about this in November 2012. Blemain says that it contacted
    the credit reference agency at that time to request amendments to their records in response
    to Mr and Mrs G’s complaint.

    In February 2013, Mr and Mrs G complained again to Blemain about their records with the
    credit reference agency as they had discovered that the records hadn’t been amended.
    Blemain asked Mr and Mrs G to provide a copy of their credit reports so that it could check
    whether or not the inaccuracies had been corrected. Blemain offered £50 for the distress
    and inconvenience caused by the inaccurate recording but maintained that the matter had
    been addressed in November 2012. Mr and Mrs G refused to provide their credit reports and
    instead made a complaint to this service.

    Sometime in or around April 2013, it appears that the records with the credit reference
    agency were amended. The adjudicator was of the view that this complaint should be
    upheld. He thought that Blemain should pay Mr and Mrs G £200 for the distress and
    inconvenience caused by its errors and he highlighted the delay in amending the records as
    a basis for increasing the recommended compensation. In addition, he said that Blemain
    should refund the costs to Mr and Mrs G of obtaining their credit reports from November
    2012 until May 2013 which they had done in order to check that the reports had been
    corrected. Blemain disagreed and asked for the complaint to be reviewed by an
    ombudsman.

    my findings
    I have considered all the available evidence and arguments to decide what is fair and
    reasonable in the circumstances of this complaint.

    It is not a matter of dispute that Blemain had allowed incorrect records to appear on Mr and
    Mrs G’s credit reports. It is clear from the correspondence relating to this complaint that this
    caused Mr and Mrs G a considerable degree of distress and inconvenience.

    While the incorrect records did cause distress to Mr and Mrs G, I haven’t seen any evidence that the
    inaccurate records actually led to the refusal of credit as the bank that Mr and Mrs G
    approached in autumn 2012 based its assessment on records held by different credit
    reference agencies not used by Blemain.

    Although it appears from Blemain’s correspondence with the credit reference agency that an
    attempt was made to correct the mistake in November 2012, I can’t see any reason why
    Blemain didn’t follow up with the credit reference agency when Mr and Mrs G contacted
    them in February 2013 to find out what had happened. The correspondence provided
    indicates that Blemain only double checked with the credit reference agency in July 2013
    once the complaint was already with this service. This added to the delay and I agree with
    the adjudicator’s assessment that, as the records were corrected without Mr and Mrs G
    providing their credit files, there was no real reason for Blemain to insist on having copies of
    the files before investigating further. I therefore agree that Blemain’s response to the
    complaint added to the distress and inconvenience.

    Having found out that their credit reports were inaccurate, I think that it was reasonable for
    Mr and Mrs G to get monthly reports until they were satisfied that their files had been
    corrected. I believe that it is fair and reasonable that Blemain should cover the costs of those
    reports.

    my final decision
    It is my final decision that this complaint is upheld.
    • Blemain Finance Limited should pay Mr and Mrs G £200 for the distress and inconvenience caused by its error.
    • Blemain Finance Limited should pay Mr and Mrs G £94.25 as compensation for the cost of credit reports they obtained between December 2012 and May 2013 in connection with this complaint.

    Susie Alegre
    ombudsman
    #staysafestayhome

    Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

    Received a Court Claim? Read >>>>> First Steps
    Tags: None

  • #2
    Re: FOS decision: Blemain compensate for inaccurate credit reporting

    Delighted to see Blemain has to pay. I wonder if they will actually pay

    Comment

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