Marbles

The Marbles card is generally seen as a credit builder card – used by people with a low credit score or no credit history. It advertises a 34.9% APR representative (variable) – meaning it is an expensive credit card to use.

Marbles is one of many trading names of NewDay Ltd – which is authorised to lend by the Financial Conduct Authority.

Initially, Marbles might give quite a low credit limit when the card is first opened – perhaps a limit in the region of £300. But Marbles won’t always diligently monitor the way the Marbles card is being used by the customer – leading to any increases to the credit limit being irresponsible and unaffordable for the customer. An example of this is outlined in a case below:

‘By the time of the increase – in September 2016 – I can see that Mr J had almost immediately borrowed up to the original limit of £300 and incurred a late payment fee. So that – coupled with the previous information they’d at the time of the opening of the account – suggests to me that Marbles should’ve asked questions of Mr J before increasing the limit. But they didn’t.’ (https://www.financial-ombudsman.org.uk/decision/DRN-2705193.pdf)

We’ve seen examples where Ombudsmen expect Marbles to be reviewing the information it has available before agreeing a credit limit increase. This might include reviewing a credit report to see how the customer is managing their debts with other lenders. Or, it might include reviewing the way the Marbles account itself has been used up to that point. For example, customers who persistently and quickly use their entire credit limit, make late payments, exceed their credit limit, or use their credit card to withdraw cash, probably cannot afford an even higher credit limit. We can see this in two further example cases below:

‘Marbles increased Mr B’s credit limit to £750 in August 2018. I’ve looked at the information Marbles had available, including Mr B’s credit file, and I think it should’ve caused it to ask more questions before proceeding. I say this because Mr B had gone over his credit limit twice within the preceding six months. Further, Mr B’s outstanding balance for other unsecured credits went from zero to around £6,200 in a period of around 12 months. In addition, Mr B took cash advances in four out of the five months before the credit limit increase took place. Taking all the above into account, I think the information shows Mr B was struggling with his finances. I think the information should’ve caused Marbles to consider carrying out more proportionate checks before deciding to increase Mr B’s credit limit.’ (https://www.financial-ombudsman.org.uk/decision/DRN-3091261.pdf)

‘I have also looked at how Mr R managed his account after it was opened to the point when the credit limit was increased in April 2017. I can see that he used most of the available credit fairly quickly and made what I think were payments close to the minimum required amounts. He also exceeded his credit limit. I have looked at Mr R’s credit file and can see that Mr R opened other credit and lending accounts around that time and that his overall debt increased significantly. So, I don’t think Marbles carried out appropriate and proportionate checks on the credit limit increase. I think Marbles increased the limit from £900 to over £2,000 when it ought to have been clear that, although Mr R was making minimum required payments, longer term Mr R would have difficulties re-paying the borrowing at those rates.’ (https://www.financial-ombudsman.org.uk/decision/DRN-3064699.pdf)

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