Not upheld: overdraft management, fees and charges, adequacy of support and forbearance complaint against Barclays Bank UK PLC

Decision detail

Summary

Mrs B complained that Barclays failed to provide sufficient support given her overdraft usage and associated fees and charges. The decision covers events since July 2024 when her overdraft limit was reduced from £5,900 to £4,200, following previous refunds in 2022 and 2024. The ombudsman found that Barclays made multiple contact attempts, offered support including repayment plans and breathing space, and provided reasonable assistance despite Mrs B's continued overdraft reliance. The ombudsman did not uphold the complaint, finding no evidence of unfair treatment or irresponsible lending, though encouraged ongoing engagement between the parties to develop a sustainable reduction plan.

The Ombudsman's reasoning

The ombudsman applied the FCA's overdraft guidance and considered whether Barclays acted fairly and reasonably. While acknowledging that commercial charges cannot be challenged as disproportionate under the Supreme Court judgment, the ombudsman examined whether Barclays treated Mrs B fairly in applying charges and offering support. The ombudsman found that Barclays made multiple contact attempts, offered appropriate support options, and that Mrs B's continued overdraft use after the limit reduction, combined with her income sources, did not demonstrate that Barclays should have intervened more directly. The ombudsman found no evidence of irresponsible lending under section 140A of the Consumer Credit Act 1974.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website