Not upheld: Other regulated complaint complaint against Monzo Bank Limited

Decision detail

Summary

Mr G complained that Monzo should be held responsible for a breakdown recovery claim that was incorrectly declined by the third-party provider included in his Monzo Max Plan packaged account. Mr G argued that consumers have a reasonable expectation that such events would be covered. The ombudsman found that while Monzo is the contracting party for the packaged account, the breakdown recovery service is a separate contract between Mr G and the third-party provider. As an insurance intermediary, Monzo's responsibilities are limited to providing clear information and notice of changes, not to claims handling decisions. The ombudsman concluded that the provider's interpretation of policy terms and claims handling is the provider's responsibility, not Monzo's, and therefore did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that while Monzo is the contracting party with Mr G for the packaged account, the breakdown recovery service is a separate contract between Mr G and the third-party provider. Monzo acts as an insurance intermediary and is responsible for providing clear information and notice of changes, but not for the provider's claims handling decisions. The provider's interpretation of policy terms and claims handling is the provider's responsibility, not Monzo's. Therefore, Monzo cannot be held responsible for the provider's decision to decline the claim.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website