Upheld: Account administration errors complaint against NewDay Ltd trading as Marbles Card

Decision detail

Summary

Mr K complained about NewDay's handling of his credit card account and the default recorded against him. NewDay terminated Mr K's account on 18 February 2025 due to arrears, but when Mr K called the next day, NewDay agreed a payment holiday until April 2025 without informing him the account had been terminated, creating a false expectation it would remain open. After the payment holiday ended, Mr K made no payments despite being aware of the arrears, and NewDay recorded a default in July 2025. The ombudsman upheld the complaint, finding NewDay's failure to disclose the termination was unfair, but rejected Mr K's argument that the default should be removed entirely, as he was not persuaded Mr K would have cleared the arrears had he been properly informed. The remedy ordered NewDay to backdate the default to February 2025 and pay £100 compensation.

The Ombudsman's reasoning

While NewDay's failure to inform Mr K of the account termination when agreeing the payment holiday was unfair and created a false expectation, the ombudsman was not persuaded that Mr K would have cleared the arrears had he been properly informed. Mr K was aware the payment holiday was ending in April 2025 and that amounts would become immediately due, yet made no payment despite the statement clearly showing the arrears amount. The ombudsman found Mr K's bank statements alone insufficient to prove he would have prioritized clearing the arrears, particularly given his failure to make any payment attempt over the two months following the holiday's conclusion.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website