Not upheld: loan application handling and information requirements complaint against Barclays Bank UK Plc

Decision detail

Summary

N, a company represented by director Mrs B, complained about how Barclays handled its business loan application. Barclays required additional information beyond the initial business plan and accounts to conduct an affordability assessment. Although the relationship manager made multiple attempts to contact Mrs B and offered to discuss requirements by phone, Mrs B stated she had no further documentation and declined to engage further. The ombudsman found Barclays acted fairly and reasonably in not progressing the application without the necessary information to assess it against the bank's lending criteria.

The Ombudsman's reasoning

The ombudsman found that Barclays' lending criteria and information requirements are matters of commercial discretion. The relationship manager took reasonable steps to clarify what information was needed by offering multiple telephone calls. Although there may have been some confusion about requirements, Mrs B was given clear opportunities to discuss this further but chose not to engage. Without the necessary information to assess affordability against Barclays' lending criteria, it was fair and reasonable for the bank not to progress the application.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website