Credit management of incorrectly calculated charges

The TIO sometimes receives complaints that a service provider has issued an incorrect account and that subsequently the service provider reported to a Credit Reporting Agency (CRA) that this account was not paid. Complainants often argue that this is grounds for removal from their consumer credit file of any “default listing” relating to that overdue payment.

Service provider’s credit management processes where overdue payment calculated incorrectly

Where on investigation it is established that an account is incorrect, the TIO would expect a service provider to adjust the account and issue a bill for the correct amount.

Where there is any dispute about the stage at which a service provider’s credit management processes should recommence, the TIO would examine each complaint on its own merits.

The TIO would have regard to the available information/evidence in each case, including:

• the difference between the correct and incorrect accounts; and
• any previous communications about the matter between the customer and service provider.

Default listings where overdue payment calculated incorrectly

Where a complainant requests removal of a default listing from a consumer credit file at a Credit Reporting Agency, on the grounds that the service provider listed an incorrectly calculated debt, the TIO would examine each complaint on its own merits.

The TIO would have regard to the available information/evidence in each case in order to establish whether at any stage the customer had disputed the charges and/or any other aspect of the credit management process and, if so, how the service provider responded to that dispute.

Based on the available information/evidence (including the difference between the correct and incorrect accounts), the TIO might decide that the credit provider should organise with the CRA either to:

1. remove the default listing from the customer’s consumer credit file; OR
   
   
2. amend the default listing to reflect the amount that should have been reported to the CRA as overdue in the first place.

Renamed: previously Credit default listings of incorrect amounts
Amended: 7 April 2005