In January 2026 I submitted a formal complaint to Onmo about my credit card account. The complaint covered two main areas:
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Whether the credit was affordable when it was approved
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A series of operational issues, including payment notifications and confusing app information
Recently I received their final response. In this post I’m going to break down what they said, what it means, and where things currently stand.
The Background to My Complaint
I opened an Onmo credit card in July 2025 with:
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£2,000 credit limit
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34.2% APR
Later, the interest rate on the account was increased significantly. At the same time, I also experienced a number of operational problems that raised concerns about how the account was being managed.
My complaint raised two key issues.
1. Affordability concerns
I questioned whether adequate affordability checks had been carried out before the credit was approved.
In particular, I raised concerns that:
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The checks may not have properly considered my existing credit commitments.
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I was never asked to reconfirm my income or financial circumstances, even when the APR increased.
Under the Financial Conduct Authority rules (specifically the Consumer Credit Sourcebook – CONC), lenders must ensure credit is affordable both at approval and during the life of the agreement.
2. Operational problems
Alongside the affordability issue, I also raised several operational concerns:
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My credit file appeared to show late payment markers, despite payments being taken by direct debit.
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I received notifications threatening late payment charges even though a payment had already been taken.
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The Onmo app gave contradictory information about whether a direct debit was set up.
What Onmo Said in Their Investigation
Onmo apologised for the delay in responding to the complaint, which they said was due to an internal oversight.
They also explained that the APR increase itself had already been addressed separately, so this response focused on:
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irresponsible lending
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operational issues
What Checks Onmo Say They Carried Out
According to Onmo, they reviewed my credit file at the time of the application and found no indicators that would prevent lending.
They stated that:
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My credit history spanned at least 11 years
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There were no active bankruptcies
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No active IVA
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No recent CCJs
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No recent defaults within six months
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No active debt management plan
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My debt-to-income ratio was within their thresholds
They also stated that my existing credit usage was not considered excessive.
Income and Expenditure Used in the Application
Onmo say that the affordability decision was based on figures I provided the during the application.
They say this information was then combined with affordability modelling provided by Experian, which includes estimates for:
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committed credit payments
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general living costs
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disposable income buffers
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economic factors such as inflation
Based on this, Onmo concluded that lending £2,000 on a credit card was reasonable and affordable.
The Payment Notification Issue
One of the operational issues I raised related to a late payment notification sent on 3 January 2026.
Onmo acknowledged that:
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A direct debit payment had been taken on 2 January 2026
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Because of the New Year bank holiday and weekend processing, the system did not recognise the payment until Monday 5 January
This meant the automated system incorrectly believed the payment had not been received and generated a warning notification.
Onmo confirmed:
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The payment was applied correctly
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No late fee was charged
They said they have referred the issue to their technical team to review how notifications are handled around bank holidays and weekends.
The Direct Debit Confusion
I also raised concerns about contradictory information in the app regarding whether my direct debit was active.
Onmo say they can see a direct debit set up on the account but have asked for clarification about the specific app messages so they can investigate further.
The Outcome of the Complaint
Onmo ultimately did not uphold the complaint.
Their position is that:
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The information provided during the application suggested the credit was affordable.
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Their affordability checks were reasonable and proportionate.
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No incorrect credit reporting has been identified.
However, they did acknowledge that the automated late payment notification was incorrect, and that receiving it would understandably have caused concern.
What Happens Next
The complaint has already been escalated to the Financial Ombudsman Service.
Onmo confirmed that the case file will now be sent to the Ombudsman investigator, who will review the complaint independently.
The Financial Ombudsman can:
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Review the lender’s affordability checks
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Consider whether the lending was responsible
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Decide whether any compensation or account adjustments should be made
Final Thoughts
While Onmo’s response explains how they reached their decision, it does not necessarily mean the matter is settled.
Affordability complaints often come down to whether a lender’s checks were reasonable given the circumstances, and the Financial Ombudsman Service frequently reaches different conclusions from lenders.
For now, the case is with the Ombudsman and awaiting investigation.
And if nothing else, this experience highlights something important for anyone dealing with credit:
Always keep records, screenshots, and copies of communications.
Because when something goes wrong, the paperwork suddenly becomes very important.
