Not upheld: credit reporting and fraud claim handling; adequacy of support offered complaint against Monzo Bank Ltd

Decision detail

Summary

Miss A complained that Monzo Bank Ltd failed to provide adequate support after she was a victim of fraud and declined her fraud claim. Unable to repay her Flex account due to funds lost in the scam, Miss A's late payments were reported to credit reference agencies. The ombudsman found that Monzo was obliged to make accurate factual reports to CRAs and had attempted to offer support through budget assessment requests. The complaint was not upheld, as the ombudsman determined that accurate CRA reporting serves an important consumer protection function and Monzo had shown forbearance by seeking to understand Miss A's financial position, though she had not provided the requested information.

The Ombudsman's reasoning

The ombudsman reasoned that lenders are obliged to make accurate factual reports to CRAs to protect both lenders and consumers by ensuring other lenders have accurate information about repayment ability. Late payment reporting reflects account status, not blame or unwillingness to pay. Monzo attempted to show forbearance by requesting a budget assessment and asking questions, but could not put a sustainable plan in place without proper understanding of Miss A's financial situation, which she had not provided.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website