Not upheld: late payment markers and account default complaint against NewDay Ltd trading as Aqua

Decision detail

Summary

Miss K complained that NewDay had unfairly applied late payment markers and defaulted her credit card account. A previous FOS decision in May 2025 had found NewDay lent unfairly, resulting in a refund of £2,106.52 applied in June 2025. Miss K subsequently missed payments in June and July 2025 and beyond, claiming she did not know the remaining balance. NewDay defaulted the account in August 2025 after several months of non-payment. The ombudsman found NewDay acted fairly because Miss K failed to make contractual payments despite receiving written communications and statements showing the amounts due, and NewDay was entitled to report accurate information to Credit Reference Agencies.

The Ombudsman's reasoning

The ombudsman found that NewDay was entitled to record missed payments as per the credit agreement terms because Miss K failed to make contractual monthly payments. Although Miss K claimed she did not know the remaining balance after the refund, NewDay had provided written correspondence and statements showing the reduced amount and monthly minimum due. The ombudsman applied ICO guidance stating defaults normally occur when accounts are three to six months in arrears, and found NewDay's decision to default in August 2025 reasonable given Miss K had not made payments for several months and had not contacted NewDay about repayments. The ombudsman noted that NewDay had made several attempts to contact Miss K and had applied breathing space, but these measures did not excuse the failure to make contractual payments.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website