Not upheld: Irresponsible lending complaint against HSBC UK Bank Plc

Decision detail

Summary

Miss O complained that HSBC UK Bank plc (trading as first direct) irresponsibly provided her with a £8,000 credit card account in December 2022. The ombudsman found that first direct conducted reasonable and proportionate pre-lending checks, including verification of Miss O's declared income of £41,290, review of her clean credit file, and an affordability assessment showing £653 monthly disposable income. With all results within the firm's credit policy thresholds and no indicators of financial difficulty, the ombudsman concluded the credit was provided fairly and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that first direct's pre-lending checks were reasonable and proportionate for the £8,000 credit limit offered. The firm verified Miss O's income, checked her credit file, and conducted an affordability assessment showing £653 monthly disposable income after deducting property payments, existing credit commitments, and essential expenditure. With no adverse credit information and all results within policy thresholds, there was nothing to suggest Miss O would be unable to sustainably repay the credit. Bank statement review was not required given the circumstances.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website