Not upheld: Irresponsible lending complaint against Barclays Bank UK PLC

Decision detail

Summary

Miss B complained that Barclaycard irresponsibly provided her with a credit card (£4,000 limit in July 2015) and a limit increase (to £5,500 in November 2016), claiming the credit was unaffordable given her existing debts and caused ongoing financial difficulty. She complained in July 2025, over nine years after the initial lending. The ombudsman assessed the complaint under section 140A of the Consumer Credit Act 1974 as relating to the fairness of the lending relationship. The ombudsman found that Barclaycard's initial checks were proportionate given Miss B's income of £20,000, low existing debt, and clean credit history, and that the limit increase was justified by her demonstrated repayment record of over £1,700 in 14 months. The ombudsman also found that Barclaycard acted fairly in providing forbearance through reduced interest payment plans and proportionate credit limit reductions. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied section 140A of the Consumer Credit Act 1974 to assess whether the lending relationship was unfair. For the initial card, the checks were proportionate given Miss B's stable finances, validated income of £20,000, and low existing debt. For the limit increase, Miss B's demonstrated repayment record of over £1,700 in 14 months clearly indicated she could repay £5,500 within a reasonable period (4-5 years). Further checks would not have changed the lending decision. Barclaycard also acted fairly in forbearance by setting up reduced interest payment plans and proportionately reducing the credit limit only after Miss B had manageable balances.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website