Not upheld: irresponsible lending complaint against Monzo Bank Limited

Decision detail

Summary

Miss C complained that Monzo acted irresponsibly in granting her a flex credit card (with limits increasing from £3,000 to £5,000) and an overdraft (increasing from £1,000 to £2,000). The ombudsman found that Monzo's checks were reasonable and proportionate, including income verification, credit file checks, and affordability assessments. Bank statements showed Miss C was meeting her commitments and using the overdraft in a controlled manner for limited periods. Although Miss C claimed financial difficulty, her actual usage patterns did not support intervention. The complaint was not upheld, though the ombudsman encouraged Monzo to provide support and forbearance given her current circumstances.

The Ombudsman's reasoning

The ombudsman found that Monzo's checks were reasonable and proportionate for the credit limits granted. Bank statements showed Miss C was meeting commitments without issue and using the overdraft in a controlled manner with awareness of her balance. The historical default was not a concern given its age. Monzo's monitoring and written notifications about repeat overdraft use were sufficient, and there was no evidence suggesting Miss C was unable to repay or that the facilities were worsening her financial situation.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website