Not upheld: unfair account transfer during repayment arrangement complaint against NewDay Ltd (trading as Aqua)

Decision detail

Summary

Mrs M complained that NewDay Ltd unfairly transferred her credit card account to a third party while she was maintaining an agreed repayment arrangement of £180 per month, which she felt was inconsistent with their arrangement and caused her distress given her vulnerability and caring responsibilities. NewDay had informed Mrs M on multiple occasions that the account could be sold while on the repayment plan, and transferred it in October 2025. The ombudsman found that while NewDay were contractually entitled to transfer the account, the key issue was whether it was fair and reasonable to do so. The ombudsman concluded it was fair because there was no material adverse impact on Mrs M's repayment terms, interest, fees, or credit file, and NewDay had been transparent about the possibility of transfer from the outset. The complaint was not upheld.

The Ombudsman's reasoning

While NewDay were contractually entitled to transfer the account and had clearly communicated this possibility, the ombudsman considered whether it was fair and reasonable to do so in the circumstances. The ombudsman found no material adverse impact on Mrs M's repayment position, no change to terms, no reintroduction of interest or fees, and no adverse credit reporting by NewDay. Although Mrs M's vulnerability and caring responsibilities were known to NewDay, vulnerability does not automatically prevent account transfers where no material harm results. The ombudsman found NewDay were transparent about the possibility of sale and that the transfer did not breach the FCA's Consumer Duty, as it did not result in a poor outcome or material harm.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website