Not upheld: irresponsible lending complaint against Nationwide Building Society

Decision detail

Summary

Mr B complained that Nationwide acted irresponsibly by approving a £1,350 credit card application in October 2025, arguing that his accumulation of over £40,000 debt in the preceding year and gambling addiction should have prompted Nationwide to decline the lending. Nationwide conducted an affordability check and credit reference agency review, finding Mr B had declared £27,000 annual income, lived with parents with minimal expenses, had approximately £25,000 in well-managed unsecured borrowing with no missed payments, and an estimated disposable income of £640 monthly. The ombudsman upheld Nationwide's decision, finding the checks proportionate and the lending decision fair based on available information, with no evidence of irresponsible lending or unfair treatment under the Consumer Credit Act 1974.

The Ombudsman's reasoning

The ombudsman found that Nationwide's proportionate checks were reasonable given the type, amount, and duration of credit offered. The declared income of £27,000 was reasonable to rely upon given the modest lending amount and Mr B's living situation. Although Mr B had high external lending, it was being well-managed with no missed payments. The estimated disposable income of £640 per month was sufficient to sustainably repay the £1,350 credit limit, particularly with the initial 0% promotional offer. The ombudsman concluded the lending decision was fair based on the information available at the time.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website