Not upheld: Account administration errors complaint against Monzo Bank Limited

Decision detail

Summary

Miss T complained that Monzo Bank Limited charged interest on her Monzo Flex account and removed an interest-free payment option despite her having agreed to pay in three interest-free instalments. Miss T had queried her account due to increased repayments and unrecognised transactions, but missed a scheduled payment of £219.64 due on 30 October 2025 while awaiting responses from Monzo. Following the missed payment, Monzo removed the interest-free option and applied interest to the balance in accordance with the account terms and conditions. The ombudsman found that Monzo had not advised Miss T that payment obligations were suspended during the investigation, the terms clearly stated the consequences of missed payments which Miss T had signed to confirm understanding, and Monzo provided timely payment reminders and notification within the contractual cure period. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that although Miss T had raised queries about her account, Monzo had not advised her that she was exempt from making her monthly repayment during the investigation. The terms and conditions of the Flex account explicitly stated the consequences of a missed payment, and Miss T had signed to confirm she understood these terms. Monzo sent a payment reminder before the due date and notified Miss T within the 7-day cure period, giving her an opportunity to bring the account up to date. Therefore, Monzo acted in accordance with the contractual terms and treated Miss T fairly.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website