Not upheld: unfair treatment of vulnerable customer / refusal to write off debt complaint against Barclays Bank UK PLC (trading as Barclaycard)

Decision detail

Summary

Mrs N complained that Barclaycard treated her unfairly as a vulnerable customer when it declined her request to write off a credit card balance of approximately £8,885 that had fallen into arrears. Mrs N disclosed significant physical and mental health challenges, a struggling business, and family illnesses, and submitted medical evidence including a DHMEF from her GP. Although Barclaycard acknowledged her difficulties and assigned her account to its Specialist Support Team, it declined the write-off request but offered forbearance options. The ombudsman found that debt write-off is a commercial decision, not a regulatory obligation, and that Barclaycard's measures—freezing interest, preventing debt sale to collection agencies, and providing specialist support—constituted fair and proportionate treatment under FCA regulations. The complaint was not upheld, though the ombudsman urged the firm to minimize correspondence given its negative impact on Mrs N.

The Ombudsman's reasoning

While the ombudsman acknowledged Mrs N's exceptionally difficult circumstances, a debt write-off is a commercial decision for the firm to make, not an obligation. The ombudsman assessed whether Barclaycard treated Mrs N fairly under CONC 7.3.4R, which requires forbearance and due consideration proportionate to individual circumstances. Barclaycard's measures—freezing interest, preventing debt sale to collection agency, assigning the account to the Specialist Support Team, and clarifying no payments were expected unless circumstances changed—were found to constitute fair and proportionate treatment. The ombudsman noted the DHMEF itself states it helps creditors 'take relevant mental health problems into account' but does not mandate debt write-off.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website