Not upheld: irresponsible lending and unaffordable credit limit increases complaint against Barclays Bank UK PLC trading as Barclaycard

Decision detail

Summary

Mr O complained to FOS in October 2025 that Barclaycard irresponsibly lent to him by approving two credit cards and repeatedly increasing limits. Card A was opened in 2002 with a £450 limit, increased to £7,900 by January 2020; Card B was opened in 2017 with a £5,000 limit. Mr O became aware around 2018/2019 that he was heavily reliant on credit and could only afford minimum repayments. Barclaycard partially upheld the complaint, agreeing Card B was irresponsibly lent and the January 2020 increase on Card A was unaffordable. The ombudsman found most of the complaint time-barred under FCA rules, as Mr O should have complained within 3 years of becoming aware of the problem in 2018/2019. For the January 2020 increase within the 6-year window, the ombudsman found Barclaycard's remedial offer fair and reasonable.

The Ombudsman's reasoning

The ombudsman applied FCA time limit rules (DISP 2.8.2) which prevent consideration of complaints more than 6 years after the event or 3 years after the complainant became aware of cause for complaint. Mr O ought to have become aware around 2018/2019 that Barclaycard contributed to his financial difficulties, making the complaint time-barred. Exceptional circumstances (health issues, debt, work stress) were insufficient to override time limits. The unfair relationship claim under Section 140A could not proceed as the debt had been sold and Barclaycard was no longer the creditor. For the January 2020 increase within the 6-year window, Barclaycard's offer of interest refund on balances above £6,400 and credit file removal was consistent with FOS irresponsible lending redress guidelines.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website