Not upheld: service failure, account access, irresponsible handling of customer requests complaint against Monzo Bank Limited

Decision detail

Summary

Mrs A complained to Monzo Bank Limited after losing her bank card and phone, and subsequently experiencing prolonged difficulties accessing her account. After receiving a replacement card, Mrs A was unable to activate it due to conflicting instructions from Monzo, and the issue remained unresolved for over a year. Additionally, Mrs A could not access the Monzo app on her old phone due to compatibility issues. Monzo paid £285 in compensation for the service failures but Mrs A sought £5,000 compensation, citing vulnerability and disability and alleging breaches of the FCA Consumer Duty and Equality Act 2010. The ombudsman did not uphold the complaint, finding the compensation sufficient and holding that Mrs A had alternative options available and that Monzo was not responsible for device compatibility issues or problems it was unaware of.

The Ombudsman's reasoning

The ombudsman found that while Monzo gave incorrect advice about card activation and delayed resolution, the compensation of £285 was sufficient for the service failures. Regarding the card activation issue, the ombudsman noted that Mrs A had family support available and an alternative account with another institution, and therefore could have continued the process or mitigated the impact. The ombudsman held that Monzo was not obligated to follow up on Mrs A's non-response to the August 2024 request given the volume of customer interactions. Regarding app access, the ombudsman found it reasonable for Monzo to require device compatibility as a customer responsibility under the terms and conditions, particularly given the phone was over 10 years old. The ombudsman also held that Monzo could not be held responsible for issues it was not aware of until August 2025.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website