Not upheld: Service failures generally complaint against Madison CF UK Limited (MCF)

Decision detail

Summary

Mrs P complained about MCF's handling of her credit card account, including delays in setting up a payment plan (19 June to 17 July 2025), restricting her account due to affordability concerns, and delays in responding to her DSAR request. MCF acknowledged the service failings and credited £50 and £150 compensation to her blocked credit card account. Mrs P objected, arguing the compensation should be paid directly to her as she could not use funds on a blocked account and the amounts did not reflect the impact of the delays. The ombudsman found the compensation amounts reasonable and standard banking practice to offset against debt, and that MCF had properly notified Mrs P of the agreed payment plan, so the complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that while MCF had service failings in delaying the payment plan setup and responding to the DSAR, the compensation amounts of £50 and £150 were reasonable and in line with what the ombudsman would have awarded. The ombudsman rejected Mrs P's argument that crediting a blocked account was unfair, reasoning that reducing the debt owed improves her overall financial position and that offsetting compensation against debt is standard banking practice. The ombudsman also found that MCF properly notified Mrs P of the agreed payment plan and that the plan's lapse was due to non-payment rather than MCF's failings. The account restriction was deemed reasonable given Mrs P's own affordability concerns and the contractual terms allowing such restrictions.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website