Not upheld: credit file reporting of overdraft following account closure complaint against Monzo Bank Ltd

Decision detail

Summary

Mr M complained that Monzo Bank Ltd failed to inform him that an outstanding overdraft balance after account closure would impact his credit file. Monzo closed his account on 8 July 2025, and when Mr M contacted the bank on 28 June 2025 about his overdraft, he was advised a repayment plan would be needed and asked about credit reporting implications. The ombudsman found that the account terms and conditions clearly stated overdrafts are repayable on demand and reported to credit reference agencies, and that Mr M had been informed of this through multiple communications. The complaint was not upheld as Monzo acted within its rights and had adequately disclosed the relevant information.

The Ombudsman's reasoning

The ombudsman found that the account terms and conditions clearly stated overdrafts are repayable on demand and will be reported to credit reference agencies. Mr M had agreed to these terms and was further informed of this when he asked about a repayment plan. Monzo was therefore within its rights to report the accurate status of the account to the CRAs, and the potential for this to happen was clearly communicated.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website