Not upheld: liability for credit agreement and credit reporting following alleged unauthorised account opening complaint against NewDay Ltd
Financial Ombudsman decision DRN-6274672 of 2026-04-20T00:00:00+00:00. liability for credit agreement and credit reporting following alleged unauthorised account opening complaint against NewDay Ltd. Outcome: Not upheld.
Decision detail
| Reference | DRN-6274672 |
|---|---|
| Decision date | 2026-04-20T00:00:00+00:00 |
| Firm | NewDay Ltd |
| Product | credit agreement |
| Claim type | liability for credit agreement and credit reporting following alleged unauthorised account opening |
| Outcome | Not upheld |
| Remedy | No remedy ordered. NewDay reminded of FCA requirement to treat customers experiencing financial hardship with forbearance and due consideration. NewDay indicated willingness to reconsider if Mr D provides additional information, including potential court findings of coercive and abusive behaviour. |
Summary
Mr D complained that NewDay unfairly held him liable for a credit agreement opened in July 2020, claiming his wife applied without his knowledge or consent and that he was subjected to coercive and domestic abuse which prevented him from reporting the matter sooner. The account was used to purchase various goods and payments were made on time until July 2022, after which missed payments led to default in February 2023. NewDay investigated Mr D's fraud claim in 2025 but found no evidence of fraudulent activity. The ombudsman did not uphold the complaint, finding that NewDay had no reason to suspect abuse at application, Mr D gave implied consent by using the account from July 2021, and it was reasonable for NewDay to require stronger evidence of the serious allegations of coercive behaviour. The ombudsman also found the default registration complied with legal and regulatory requirements.
The Ombudsman's reasoning
The ombudsman found that NewDay had no reason to suspect coercive behaviour at the point of application in 2020. Although Mr D raised concerns about the account in July 2021, he declined NewDay's offer to investigate at that time and again in October and November 2023. The ombudsman considered it reasonable for NewDay to require more evidence to substantiate serious allegations of coercive and abusive behaviour, particularly given the informal nature of FOS proceedings and the passage of time. The ombudsman noted that even if Mr D did not give actual consent to opening the account, he gave implied consent for the purchases by using the account from July 2021 onwards and deriving benefit from the goods purchased. Regarding the default registration, NewDay complied with the Consumer Credit Act 1974 and ICO guidelines by issuing proper notifications and recording accurate information.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| NewDay Ltd, all decisions | 2,605 | 37% |
Source
Read the original decision on the Financial Ombudsman Service website