Upheld: payment processing errors, technical failures, unfair communication, incorrect arrears notifications complaint against ONMO Limited
Financial Ombudsman decision DRN-6426142 of 2026-06-12T00:00:00+00:00. payment processing errors, technical failures, unfair communication, incorrect arrears notifications complaint against ONMO Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6426142 |
|---|---|
| Decision date | 2026-06-12T00:00:00+00:00 |
| Firm | ONMO Limited |
| Product | Credit card |
| Claim type | payment processing errors, technical failures, unfair communication, incorrect arrears notifications |
| Outcome | Upheld |
| Remedy | Pay Mr C £50 in compensation in addition to the £100 already applied and earlier goodwill payments (total compensation now £185 plus removal of fees and credit file markers) |
Summary
Mr C complained that ONMO Limited made errors applying payments to his credit card account and failed to communicate fairly about these issues. ONMO issued an incorrect late payment notification in July 2025 due to a technical error, causing Mr C to make an unnecessary overpayment. Further technical issues prevented direct debit payments from being collected in August and September 2025, and Mr C was not notified, forcing him to manually make payments and later receiving disputed arrears correspondence. ONMO acknowledged the errors and removed fees and adverse credit markers, plus paid £100 compensation, but the ombudsman found this did not fully reflect the cumulative impact. The ombudsman upheld the complaint and ordered an additional £50 compensation.
The Ombudsman's reasoning
The ombudsman found that ONMO made undisputed errors over a period of time, not a one-off mistake. Mr C received conflicting and inaccurate information about his account status, experienced distress and inconvenience requiring manual intervention, and lacked clear explanation of what went wrong. While ONMO's remedial steps (fee removal, credit file correction, £100 compensation) were important and appropriate, they did not fully reflect the cumulative impact of these errors on Mr C. The ombudsman considered proportionality and agreed with the investigator that additional compensation of £50 was fair and reasonable.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| ONMO Limited, all decisions | 36 | 32% |
| Credit card, all decisions | 25,211 | 22% |
Source
Read the original decision on the Financial Ombudsman Service website