Not upheld: data accuracy error and account management complaint against NewDay Ltd (trading as Bip)

Decision detail

Summary

Mr N complained that NewDay approved his credit application despite having an incorrect date of birth on file (wrong by one day), which he argued could have exposed him to identity fraud, and that he received a payment request while in a payment plan. NewDay had already paid £50 compensation and corrected the date of birth after Mr N provided his driving licence. The ombudsman found the error was a minor clerical discrepancy within the system's design parameters, not a serious breach, and that the £50 compensation was reasonable. The ombudsman also confirmed NewDay's regulatory obligation to issue notices during payment plans and found its post/app-only document delivery policy reasonable for security reasons.

The Ombudsman's reasoning

The ombudsman was satisfied that the one-day discrepancy in the date of birth was a minor clerical error rather than a serious breach, particularly as other identity verification factors were accurate and the system is designed to allow for such small discrepancies. The ombudsman found that £50 compensation was reasonable for the inconvenience caused. Regarding the payment request during the payment plan, the ombudsman acknowledged Mr N's concern but confirmed NewDay has a regulatory obligation to issue certain notices regardless of payment plan status. The ombudsman found NewDay's decision to issue documents by post or app only (rather than email) to be reasonable for security reasons given Bip is a digital-only proposition.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website