Not upheld: irresponsible lending and failure to provide support complaint against Monzo Bank Limited

Decision detail

Summary

Mrs R complained that Monzo irresponsibly lent her £20,000 in 2024 and failed to intervene when she subsequently developed gambling addiction. The ombudsman reviewed Monzo's affordability assessment, which was based on verified income of approximately £3,000 net monthly, declared mortgage contribution of £1,000, existing debts of £2,400, and estimated living costs of £1,000, leaving sufficient disposable income for the £437 monthly repayments. Although Monzo became aware in May 2025 that Mrs R was suffering from gambling addiction and financial difficulties and failed to act on an internal support request, the ombudsman found no detriment to this loan as Mrs R remained ahead of schedule with repayments. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the regulatory requirement for a reasonable and proportionate affordability assessment that is borrower-focused. Monzo used verified figures where available and reasonably calculated figures where they were not. Based on the information Monzo gathered and knew about Mrs R's circumstances at the time of lending, there was nothing to suggest she would be unable to sustainably repay the loan. The subsequent failure to act on the support request did not cause detriment regarding this loan, as Mrs R remained ahead of schedule with repayments and incurred no fees or charges.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website