Not upheld: service failure, complaint handling delay, and repayment date amendment complaint against Monzo Bank Limited

Decision detail

Summary

Mr S complained to Monzo Bank Limited about its refusal to amend his scheduled repayment date on his Monzo Flex account and about the delay in handling his complaint. Mr S initially requested the change in August 2024 when he had missed a payment due to reduced earnings, but Monzo advised that changes were not possible while arrears existed. After clearing the arrears, Mr S requested the change again in September 2024, reporting he could not find the option on the app. Monzo provided step-by-step instructions, but Mr S reported continued inability to change the date on 9 September 2024, by which time he had already missed his 7 September payment. The ombudsman did not uphold the complaint, finding that Monzo's policy was reasonable, Mr S had adequate opportunity to contact Monzo before the payment was due, and the apology for complaint handling delay was sufficient.

The Ombudsman's reasoning

The ombudsman found that Monzo's policy of not allowing repayment date changes while arrears exist was reasonable, as it ensures customers receive appropriate support through the Financial Health team. The ombudsman determined that Mr S had a reasonable opportunity to contact Monzo before his 7 September payment was due if he continued experiencing issues after receiving the step-by-step instructions on 4 September. Since Mr S did not contact Monzo until 9 September (after the payment had already been missed), Monzo was not responsible for the missed payment. Regarding the complaint handling delay, while the ombudsman acknowledged the 11-month delay was unacceptable, it found that Monzo's apology was sufficient remedy given that once the complaint was logged, a response was issued within reasonable time.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website