Not upheld: account closure / application reversal complaint against Onmo Limited

Decision detail

Summary

Mr H complained that Onmo unfairly closed his credit card account one day after opening it, following additional checks. He argued the checks should have been completed before approval and questioned the lack of transparency regarding the closure reason. The ombudsman found that Onmo's actions complied with its terms and conditions and standard process, as enhanced due diligence checks are routinely conducted after initial approval for certain applications. The decision was made on a reasonable and proportionate basis in compliance with lending policies, and the credit file reporting was accurate. The complaint was not upheld and no remedy was ordered.

The Ombudsman's reasoning

The ombudsman found that Onmo's actions complied with its terms and conditions and standard process. The application followed Onmo's normal procedure with no error, as enhanced due diligence checks are routinely conducted after initial approval for certain applications. The ombudsman noted that systemic issues with application processes are outside FOS jurisdiction and are the responsibility of the Financial Conduct Authority. The decision to close the account was made on a reasonable and proportionate basis in compliance with lending policies. The credit file reporting was accurate and reflected legitimate reasons for the closure.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website