Not upheld: default reporting and account termination following arrears complaint against ONMO Limited

Decision detail

Summary

Mr G complained that ONMO Limited unfairly terminated his credit card account and reported a default to credit reference agencies. His account fell into arrears in September 2024 and remained one month behind, with a temporary payment plan agreed in February 2025 ending in July 2025. ONMO sent a notice of default in October 2025 requiring payment of £81.40 in arrears by a specified date, but Mr G did not meet this deadline. The ombudsman found that ONMO had accurately reported true information and acted fairly in accordance with the credit agreement and regulatory requirements, and therefore did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that ONMO was required to report true and accurate information to credit reference agencies and had done so. The account was genuinely in arrears as Mr G had failed to make the required payments, with each payment being used to clear previous month's arrears rather than current payments. Despite receiving a clear notice of default specifying the arrears amount and deadline, Mr G did not pay the required £81.40 by the specified date. The ombudsman found no evidence that interest charges were incorrect or that the 30.30% rate had been exceeded. Therefore, ONMO acted fairly and in accordance with the credit agreement terms and regulatory requirements.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website