118 118 Money – Terminated My Account, Wrong Clause Cited, No Explanation, and Now Demanding Full Re

Kryten2340_001

Hi all — looking for advice or if anyone’s experienced similar with 118 118 Money. I apologies for the long post but need to get all facts down so it's clear.  I am happy to post a copy of the termination letter and agreement with sensitive bits redacted if it helps.

The situation:Used my credit card to do a few Western Union transfers to pay a Vodafone bill as Vodafone don't accept credit cards.All transactions were genuine and authorised by me.Next day (04/04) — my card was blocked without warning.

What happened next:

• Contacted 118 118 money. Told a “specialist team” was reviewing it — but no contact came.

• I raised two complaints; only after the first was I told to email their financial crimes team (I did, multiple times — no reply).

• 23/04 – Second complaint was closed (not upheld). Still no real explanation.

• 11/05 – I referred the matter to the Financial Ombudsman due to the silence.

• 16/05 - Financial Ombudsman advise me they have contacted 118 118 Money for their version of events.
  

• 17/05 – I received a termination letter, dated 13/05. Their reasoning being they believe I have regularly and seriously broken the agreement despite me emailing multiple times stating the transactions were genuine.

Problems with the termination:

• Letter cites Section 14 (early repayment) — this is the wrong clause. It should be Section 15.4 for breach.

• Says I’ve “seriously or regularly breached the terms”, but doesn’t explain how.

• Refers to a required FCA arrears info sheet, but didn’t include it.

• Says I “may apply to court for more time to pay” — despite never missing a payment.

• Claims Sunday opening hours — they were closed when I called.

Why I’m concerned:

• No communication, incorrect clause, missing documents — it feels like a template letter with no case review.

• I’ve done everything by the book and just want clarity and fair treatment.

I am not even bothered that they have closed by account but it is the manner in which they have done so.  Plus I am unable to clear the balance in full.  Section 22 of my agreement mentions the following:

THIRD PARTY PROVIDER (TPP) You can instruct a TPP to initiate Balance Transfers and Money Transfers from your Account, and to provide account information services to you. 

With that said I don't believe I've done anything wrong in using Western Union. It feels like they are punishing me for not using their own bank transfer service where they would have profited from a fee.  If Western Union was an issue why was the merchant not blocked?

Has anyone:

1. Had a lender misquote their agreement in a termination notice?

2. Dealt with similar treatment from 118 118 Money?

3. Seen the Financial Ombudsman resolve anything like this?

Thanks for reading — any advice welcome!

Kryten2340_001

To add I believe 118 118 Money are in breach of the following:

FCA PRIN 7 – Communications with Clients

PRIN 7.1.1R: "A firm must pay due regard to the information needs of its clients and communicate information to them in a way which is clear, fair and not misleading."

Interpretation:
Quoting an incorrect clause in a legally significant letter — like a termination notice — is a misleading communication. It directly affects your understanding of your rights and their justification for ending the agreement.

Consumer Credit Act 1974 – Section 98A

The Act requires creditors to give accurate, clear, and legally valid termination notices, especially for fixed-sum credit agreements.

If they’ve based their Section 98A termination on an incorrect clause, the notice may be invalid. Courts and the Ombudsman can rule it as procedurally unfair, and possibly even unenforceable if challenged.

FCA CONC 13.1.4G – Accurate Credit Agreement Management

“A firm should ensure that the actions it takes in respect of arrears or default are appropriate and proportionate and that the customer is not subject to unfair or improper practices.”

Interpretation:
Quoting the wrong clause in a termination notice, failing to clarify the nature of the breach, and then demanding full payment immediately? That’s neither appropriate nor proportionate.

Nasqueron

Log a formal complaint 

Give them 8 weeks, go from there

Do you wish to stay with 118 given they don't have to offer you a service?

You can google "FOS 118118 money" and there may be some cases, it's unfortunately something you will have to research yourself