Not upheld: refund handling and dispute resolution complaint against Monzo Bank Limited

Decision detail

Summary

Mr M complained about how Monzo handled refund requests for two transactions made in June 2025. The merchant issued refunds using incorrect details, causing them to be sent to Mr M's current account instead of his Flex account. Monzo raised disputes and provided temporary refunds, later removing them when it discovered the merchant had already refunded the amounts. Mr M disputed whether he had requested the disputes and claimed he was out of pocket. The ombudsman found that Mr M did request the dispute based on evidence of his receipt submission, that Monzo processed the refunds correctly based on the merchant's submission, and that Mr M suffered no financial loss as all refunds were received and could be applied to his account balance.

The Ombudsman's reasoning

The ombudsman found that Mr M did request the dispute based on evidence that he provided a receipt for the £85.98 transaction and Monzo sent him a chat message confirming the dispute details. The refunds were processed correctly by Monzo based on how the merchant submitted them, and Monzo was not responsible for the merchant's decision to use incorrect details. Mr M received all refunds and was provided with clear explanations and 14 days notice before temporary credits were reversed. The ombudsman found no evidence that Mr M suffered a financial loss, as the refunds reduced his balance due when moved to the appropriate account.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website