Not upheld: Account closure without notice complaint against Monzo Bank Limited

Decision detail

Summary

Mr M complained that Monzo closed his account without explanation after he disputed a payment and that it is pursuing him for the resulting overdraft balance which has affected his credit rating. Monzo temporarily credited the disputed amount and raised a chargeback, but when the retailer defended it, Monzo re-debited the account leaving it overdrawn. The ombudsman found that Monzo acted fairly by providing two months' notice in accordance with the account terms, correctly handling the chargeback process, and being entitled to pursue the outstanding debt. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Monzo complied with its contractual obligations by providing two months' notice before closing the account, which is permitted under the terms and conditions. The chargeback process is voluntary and Monzo acted correctly in temporarily crediting the account and then re-debiting it when the retailer defended the chargeback. As the re-debit was fair, Monzo is entitled to pursue the resulting overdraft debt and report it accurately to credit reference agencies.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website