Partially upheld: irresponsible lending and unaffordable credit provision complaint against NewDay Limited (trading as Marbles)
Financial Ombudsman decision DRN-6189413 of 2026-04-29T00:00:00+00:00. irresponsible lending and unaffordable credit provision complaint against NewDay Limited (trading as Marbles). Outcome: Partially upheld.
Decision detail
| Reference | DRN-6189413 |
|---|---|
| Decision date | 2026-04-29T00:00:00+00:00 |
| Firm | NewDay Limited (trading as Marbles) |
| Product | credit card |
| Claim type | irresponsible lending and unaffordable credit provision |
| Outcome | Partially upheld |
| Remedy | NewDay must rework the card account and refund all interest, fees and charges applied from 23 July 2021 onwards that have not already been refunded. If this results in a credit balance, NewDay must refund it with simple interest at 8% per annum from the date of each overpayment. If sums remain due, NewDay must work with Mrs D to agree an affordable repayment plan. Once the account is cleared, NewDay must remove all relevant adverse credit information from Mrs D's credit file. As the debt has been sold to a third party, NewDay must arrange to buy the debt back or liaise with the third party to ensure redress is actioned promptly. |
Summary
Mrs D complained that NewDay irresponsibly provided credit through a Marbles credit card and three subsequent limit increases between October 2020 and October 2021. NewDay initially defended all decisions but later conceded the third increase should not have been granted. The Ombudsman found that the original card issuance in October 2020 and the first increase in March 2021 were fair decisions based on reasonable checks and adequate disposable income at those times. However, the second increase in July 2021 was upheld as a breach because NewDay failed to conduct adequate checks despite having access to information showing Mrs D's disposable income had fallen from £900 to £250, her credit commitments had increased significantly, and she had recent late payments on the card. The Ombudsman ordered NewDay to refund all interest, fees and charges from 23 July 2021 onwards, arrange repayment plans if needed, and remove adverse credit information once the account is cleared.
The Ombudsman's reasoning
For the original card issuance and first increase, NewDay carried out reasonable and proportionate checks and the credit appeared affordable based on estimated disposable income and modest credit amounts. However, for the second increase in July 2021, NewDay failed to conduct adequate checks given the sharp fall in disposable income from £900 to £250, the substantial increase in credit commitments, and the recent late payments visible in their own records. Had NewDay obtained more information, they would have discovered Mrs D was substantially overdrawn and incurring regular overdraft interest, which would have revealed that further lending was likely to cause foreseeable harm.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| NewDay Limited (trading as Marbles), all decisions | 1 | 50% |
Source
Read the original decision on the Financial Ombudsman Service website