Not upheld: complaint about offer of credit limit increase versus zero percent instalment plan; interest charging complaint against NewDay Ltd

Decision detail

Summary

Ms H complained to NewDay Ltd about being charged interest on a purchase made in August 2024, believing she had applied for a zero percent instalment plan. NewDay refunded approximately £100 in interest as a goodwill gesture. Ms H subsequently complained that NewDay offered her a credit limit increase rather than a zero percent instalment plan in December 2024. The ombudsman found no evidence supporting that a credit limit increase was offered in December 2024; NewDay's records indicated the offer was made in June 2025. The ombudsman concluded that even if the offer had been made as Ms H claimed, NewDay would not have acted unfairly as such offers are subject to status and not guaranteed under the account terms. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found insufficient evidence that a credit limit increase was offered in December 2024 as Ms H claimed; NewDay's records indicated the offer was made in June 2025. Even if such an offer had been made in December 2024, this would not constitute wrongful conduct as zero percent instalment plans are subject to status and not guaranteed under the account terms. Ms H would have had the opportunity to review her order before completing the purchase to confirm which plan was selected. The ombudsman also found no evidence of wrongful communication based on call recordings reviewed.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website