Not upheld: debt assignment without prior notice and default reporting complaint against MBNA Limited
Financial Ombudsman decision DRN-6203033 of 2026-04-11T00:00:00+00:00. debt assignment without prior notice and default reporting complaint against MBNA Limited. Outcome: Not upheld.
Decision detail
| Reference | DRN-6203033 |
|---|---|
| Decision date | 2026-04-11T00:00:00+00:00 |
| Firm | MBNA Limited |
| Product | credit card |
| Claim type | debt assignment without prior notice and default reporting |
| Outcome | Not upheld |
| Remedy | No additional remedy ordered. The £150 compensation previously offered by MBNA for mismanagement of expectations was deemed fair and reasonable. The ombudsman declined to require removal of the default from Miss D's credit file as no error was found in its application. |
Summary
Miss D complained that MBNA sold her credit card debt to Lowell Group despite assuring her during a June 2023 phone call that the debt would remain with MBNA and there was no pressure to repay. The account had been defaulted in May 2023 following non-payment. MBNA acknowledged the phone call information was correct at the time but explained its processes had changed, and offered £150 compensation. The ombudsman found MBNA acted within its contractual rights and regulatory obligations when selling the debt, properly notified Miss D on 22 August 2024, and correctly applied the default following a default notice. The complaint was not upheld, and the ombudsman declined to require removal of the default from Miss D's credit file.
The Ombudsman's reasoning
The ombudsman found that while MBNA provided information during the 6 June 2023 call that was correct at that time, MBNA's processes had legitimately changed and the £150 compensation for mismanagement of expectations was fair. Regarding the debt sale, the credit agreement terms and conditions permitted MBNA to sell the debt if minimum payments were not made, and there is no regulatory requirement for prior notice of assignment. The notification letter dated 22 August 2024 was properly addressed, and the ombudsman could not hold MBNA responsible for postal non-delivery. The two-week delay between sale and notification was not unreasonable. The default was properly applied following the default notice and non-payment, and Miss D was aware of the default and its credit file impact as of June 2023.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| MBNA Limited, all decisions | 3,858 | 28% |
Source
Read the original decision on the Financial Ombudsman Service website