Not upheld: account suspension and refusal to reinstate; persistent debt management complaint against NewDay Ltd trading as Aqua

Decision detail

Summary

Mrs S complained that NewDay Ltd refused to reinstate her credit card account after she completed a PayDown Plan early by May 2025. The account had been suspended in 2023 after being identified as in persistent debt, following multiple warnings from ND. The ombudsman found that ND acted fairly and in accordance with FCA rules in managing the persistent debt situation and suspending the card. The firm had not promised automatic reinstatement upon plan completion, and retained commercial discretion to maintain the suspension. The ombudsman rejected Mrs S's complaint, finding no unfair or unreasonable conduct by ND.

The Ombudsman's reasoning

The ombudsman found that ND acted in accordance with FCA rules and guidance on persistent debt management. ND provided multiple warnings before suspension and did not suspend immediately upon entering persistent debt but only after prolonged persistence. The communication clearly stated that reinstatement would only occur 'if we are able to' and did not promise automatic reinstatement upon plan completion. ND had commercial discretion and legitimate grounds to maintain suspension based on account management and financial circumstances. The early repayment did not create an obligation to reinstate, and at the time of complaint, an immediate review was not unreasonable given Mrs S had only recently completed the plan.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website