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

Decision detail

Summary

Mr H complained that Barclaycard acted irresponsibly by approving his credit card application in April 2016 and increasing the limit four times between 2018 and 2023. Barclaycard did not hold records of affordability checks for decisions made before January 2019 due to the passage of time. The ombudsman analysed Mr H's bank statements and found he had approximately £550-£670 in monthly disposable income after expenditure, sufficient to afford the credit limits. For later increases, Mr H never fully utilised the increased limits. The ombudsman rejected Mr H's argument that Barclaycard should have reviewed his wider financial circumstances, including his reliance on overdrafts and minimum payments across multiple cards, finding that proportionate affordability assessments based on income and expenditure were sufficient. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that although Barclaycard did not hold records of affordability checks for early decisions, analysis of Mr H's bank statements showed he had sufficient disposable income (approximately £550-£670 monthly after expenditure) to afford sustainable repayments on the credit limits. For later credit limit increases, Mr H never fully utilised the increased limits, causing no financial loss. The ombudsman rejected Mr H's argument that wider financial circumstances (minimum payments on multiple cards and overdraft reliance) should have triggered more extensive checks, finding that proportionate affordability assessments based on income and expenditure were sufficient.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website