Not upheld: account closure, debt sale, credit limit reduction, repayment plan management complaint against NewDay Ltd (trading as Marbles)

Decision detail

Summary

Mr M complained about NewDay's handling of his Marbles credit card account, specifically the December 2022 credit limit reduction from £4,400 to £650, the subsequent repayment plans he entered, and the sale of his account to a debt purchaser in October 2025. Mr M argued the credit limit reduction caused financial difficulties, the repayment plan was imposed rather than agreed, and the account was sold before the stated deadline despite his willingness to pay in full. The ombudsman found NewDay acted fairly in all respects: the credit limit reduction was justified by arrears on another account, the repayment plan was appropriate based on affordability assessment, and the account sale was permitted by terms and conditions. Although NewDay could have been clearer about the sale timeline, Mr M failed to make full payment by the deadline and his payment history suggested he would not have done so.

The Ombudsman's reasoning

The ombudsman found NewDay was entitled to reduce the credit limit as Mr M had fallen into arrears on another card, which is a reasonable lender responsibility. The repayment plan was suitable based on the income and expenditure assessment showing Mr M could only afford £8 monthly, and Mr M had been informed of the potential for account sale. While NewDay could have been clearer that the account could be sold before the 3 December 2025 deadline, Mr M did not make full payment by that date despite having the opportunity, and his previous payment history suggested he would not have paid in full. The ombudsman noted Mr M's failure to update his address was his responsibility.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website