Partially upheld: forbearance and account management; failure to implement agreed payment holiday; incorrect application of Mental Health Crisis Breathing Space complaint against NewDay Ltd trading as Fluid
Financial Ombudsman decision DRN-6140593 of 2026-04-23T00:00:00+00:00. forbearance and account management; failure to implement agreed payment holiday; incorrect application of Mental Health Crisis Breathing Space complaint against NewDay Ltd trading as Fluid. Outcome: Partially upheld.
Decision detail
| Reference | DRN-6140593 |
|---|---|
| Decision date | 2026-04-23T00:00:00+00:00 |
| Firm | NewDay Ltd trading as Fluid |
| Product | credit card |
| Claim type | forbearance and account management; failure to implement agreed payment holiday; incorrect application of Mental Health Crisis Breathing Space |
| Outcome | Partially upheld |
| Remedy | NewDay Ltd trading as Fluid must: (1) pay Ms C £100 compensation to recognise the upset caused by the failure to implement the agreed payment holiday in June 2025; (2) amend the default date on Ms C's credit file to 30 June 2025 at the latest; (3) return the account from the third party to NewDay. |
Summary
Ms C complained that NewDay Ltd trading as Fluid treated her unfairly regarding an outstanding credit card balance, arguing that NewDay failed to exercise reasonable forbearance, failed to apply Mental Health Crisis Breathing Space protection, and failed to treat her as a vulnerable customer. Ms C had missed payments from September 2024 and NewDay agreed multiple payment holidays. In June 2025, Ms C disclosed she was extremely unwell and unable to work for at least six months. NewDay agreed a three-month hold but failed to implement it, resulting in the account being passed to a third party and subsequently defaulted. The ombudsman upheld the complaint in part, finding NewDay made an error in failing to implement the June 2025 hold and awarding £100 compensation with an amended default date of 30 June 2025. However, the ombudsman rejected Ms C's claims regarding Mental Health Crisis Breathing Space protection and found that defaulting the account in late June 2025 was reasonable given her circumstances.
The Ombudsman's reasoning
The ombudsman found that NewDay provided fair and reasonable forbearance up until June 2025 by agreeing multiple payment holidays and signposting support. However, by June 2025, when Ms C disclosed she could not work for at least six months and had negative disposable income with priority bill arrears, NewDay should have considered defaulting the account rather than agreeing another three-month payment holiday, as this would not have been beneficial. The ombudsman accepted that NewDay made an error in failing to properly implement the agreed three-month hold in June 2025, resulting in the account being passed to a third party. However, the ombudsman rejected Ms C's claim that she was protected by Mental Health Crisis Breathing Space, as she had not completed the formal application process required by the scheme, including certification by an Approved Mental Health Professional. The ombudsman concluded that the £100 compensation offered by NewDay for the June 2025 error was fair and proportionate.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| NewDay Ltd trading as Fluid, all decisions | 5 | 10% |
Source
Read the original decision on the Financial Ombudsman Service website