Upheld: identity fraud and irresponsible lending (failure to prevent fraudulent credit agreement) complaint against NewDay Ltd
Financial Ombudsman decision DRN-6133603 of 2026-04-16T00:00:00+00:00. identity fraud and irresponsible lending (failure to prevent fraudulent credit agreement) complaint against NewDay Ltd. Outcome: Upheld.
Decision detail
| Reference | DRN-6133603 |
|---|---|
| Decision date | 2026-04-16T00:00:00+00:00 |
| Firm | NewDay Ltd |
| Product | credit agreement |
| Claim type | identity fraud and irresponsible lending (failure to prevent fraudulent credit agreement) |
| Outcome | Upheld |
| Remedy | NewDay Ltd directed to: (1) Disassociate Mr G's name and details from the credit agreement and debt; (2) Remove all record of the credit agreement and debt from Mr G's credit record; (3) Remove any adverse CIFAS and other fraud loadings from fraud prevention databases; (4) Contact the DCA to cease all debt collection activity and, if possible, re-acquire the debt; (5) Pay Mr G £50 distress and inconvenience payment; (6) Confirm completion in writing to Mr G |
Summary
Mr G complained that NewDay Ltd held him liable for a credit agreement and phone purchase he did not authorize, claiming identity fraud. NewDay initially rejected the fraud claim despite Mr G providing evidence of being a victim of identity fraud since 2017, with multiple bank accounts and credit agreements opened in his name without consent. The Financial Ombudsman upheld the complaint, finding Mr G's testimony consistent and plausible, supported by letters from multiple banks confirming they had closed accounts as fraudulently opened. The ombudsman directed NewDay to disassociate Mr G from the account, remove all records from his credit file and fraud databases, cease debt collection activity, and pay £50 compensation.
The Ombudsman's reasoning
The ombudsman found Mr G's testimony consistent, plausible and supported by evidence. While acknowledging the unusual aspect of the phone being initially delivered to Mr G's correct address, the ombudsman noted the address was quickly changed and that the fraudster may have simply made an error. The fact that multiple banks had independently agreed other accounts were fraudulently opened, despite passing identity checks, supported the conclusion that Mr G was a victim of identity fraud. The ombudsman was satisfied on balance that Mr G did not consent to the NewDay application and had no knowledge of it until contacted by the DCA.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| NewDay Ltd, all decisions | 2,605 | 37% |
Source
Read the original decision on the Financial Ombudsman Service website