Not upheld: Irresponsible lending complaint against Barclays Bank UK PLC

Decision detail

Summary

Miss S complained that Barclaycard irresponsibly provided her with a credit card (£6,400.00 limit in March 2017) and a limit increase (to £10,000.00 in December 2018), alleging the credit was unaffordable and ongoing interest and charges prevented her from managing her finances. Barclaycard initially rejected the complaint as being made too late (August 2025). The ombudsman found the complaint could be reasonably interpreted as concerning the fairness of the lending relationship under section 140A of the Consumer Credit Act 1974. However, the ombudsman concluded that Barclaycard's checks were proportionate and reasonable, given Miss S's validated income of approximately £17,000.00, stable circumstances, and demonstrated repayment record of over £12,500.00 in the 15 months following the initial card provision. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied section 140A of the Consumer Credit Act 1974 to assess whether the lending relationship was unfair. For the initial card, the checks were proportionate given Miss S's apparent financial stability, validated income of £17,000.00, and lack of adverse credit information. For the limit increase, Miss S's demonstrated repayment record of over £12,500.00 in 15 months clearly indicated she could repay £10,000.00 within a reasonable period (4-5 years). The ombudsman noted that Miss S's mortgage was taken on the same month as the limit increase and that Barclaycard was not aware of this; moreover, Miss S's subsequent payment behaviour (almost £12,000.00 in the following year) demonstrated she could manage the increased limit.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website