Not upheld: scam-related lending and service failures complaint against MBNA Limited

Decision detail

Summary

Mr R complained to MBNA after discovering that a £15,000 loan he obtained in June 2025 was the result of a scam. He argued that MBNA should have done more to verify his application and that the loan was too easy to obtain. He was also dissatisfied with MBNA's service, including unanswered letters and incorrect communications. MBNA paid £50 compensation but Mr R felt this was insufficient. The ombudsman found that while MBNA had provided some poor service, the majority of Mr R's distress was caused by the scammers themselves, not MBNA. Since Mr R had already repaid only the principal amount without interest or charges, and the £50 compensation fairly reflected MBNA's service failures, the complaint was not upheld.

The Ombudsman's reasoning

The ombudsman distinguished between losses caused by the scammers (for which MBNA is not responsible) and poor service by MBNA (for which compensation may be due). While acknowledging some service failures, the ombudsman found that Mr R had already received the appropriate remedy regarding the loan itself (no interest or charges paid) and that the £50 compensation fairly reflected the impact of MBNA's service failures. The ombudsman noted that much of Mr R's distress was attributable to the scammers, not MBNA, and that it would be unfair to require MBNA to compensate for actions of third parties.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website