Not upheld: Irresponsible lending complaint against NATIONAL WESTMINSTER BANK PUBLIC LIMITED COMPANY

Decision detail

Summary

Mr D complained that NatWest irresponsibly provided him with a credit card in December 2015 with a £1,300 limit. The complaint was referred to FOS more than six years later and was considered under Section 140A of the Consumer Credit Act 1974 as an unfair relationship claim. NatWest's pre-lending checks showed Mr D had declared income of £1,750, expenses of £546, and only £100 in existing credit. The ombudsman found the checks were proportionate and reasonable, and that even if NatWest had reviewed Mr D's bank statements, which showed a well-managed account with primarily discretionary expenditure, it would not have changed its lending decision. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that NatWest's affordability checks were reasonable and proportionate for the £1,300 credit limit offered. Based on the information gathered, there was nothing to suggest Mr D was likely to be unable to sustainably repay the credit. Even if NatWest had reviewed Mr D's bank statements, the ombudsman concluded it would not have reached a different lending decision, as the statements showed a well-managed account with primarily discretionary expenditure and no evidence of housing costs or utilities.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website