Not upheld: unfair treatment during financial difficulties, overdraft decline, account fee refund request, discrimination allegation complaint against Clockwise Credit Union Limited

Decision detail

Summary

Mr P, a Clockwise Credit Union member receiving disability living allowance, experienced financial difficulties and had his loan repayments reversed for October and November 2025. When he requested the advertised £100 overdraft in November 2025, Clockwise declined it because his loan was in arrears. After making up the payments in December, Mr P reapplied but was again declined as the loan showed late payments. Mr P also requested a pause on future repayments and refund of his £8.50 monthly account fee, and alleged discrimination. The ombudsman found Clockwise acted fairly and in line with their reasonable lending policies, properly declined the overdraft based on arrears criteria, and found no evidence of discrimination or unfair treatment.

The Ombudsman's reasoning

The ombudsman found that Clockwise's policy of declining overdrafts where a member has recently been in arrears is reasonable and appropriate for protecting members' interests. The overdraft was properly declined because Mr P's loan was two months in arrears when first requested, and later showed late payments. The current account fee was not refundable as the overdraft was clearly advertised as subject to eligibility and other benefits were provided. Regarding the pause on loan repayments, while Clockwise should treat Mr P sympathetically, this does not require agreeing to indefinite payment breaks, particularly after recent reversals. The ombudsman found no evidence of discrimination or unfair treatment, noting that communication difficulties were due to technical issues and that Clockwise listened to Mr P's concerns and explained their decisions.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website