Not upheld: payment deferral, plan changes, service quality complaint against Monzo Bank Limited

Decision detail

Summary

Mr B complained that Monzo Bank Limited failed to defer a Flex payment to the end of September 2025 as requested, leading to his repayment plan being changed and interest being applied. Although Mr B's initial request on 21 September was clear, the payment due on 15 September had already been missed. Monzo asked Mr B to confirm the payment amount and affordability, but Mr B did not respond to these questions. After seven days without the payment being made or an arrangement being agreed, Monzo's system automatically adjusted the Flex plans to minimum payments with interest applied, in accordance with the Flex agreement terms. The ombudsman found that Monzo acted reasonably in requiring this information before agreeing to any arrangement and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that while Mr B's initial request to defer the payment was clear, the payment had already been missed when he made the request. Monzo reasonably required confirmation of the payment amount and affordability before agreeing to any arrangement. Since Mr B did not provide this information despite being asked explicitly, no repayment arrangement was agreed. The automatic adjustment of the Flex plans and application of interest occurred within seven days of the missed payment in accordance with the Flex agreement terms, not due to any unfair action by Monzo. The service provided was polite and focused on required processes, and did not fall below reasonable expectations.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website