Not upheld: irresponsible lending - credit limit increase complaint against Barclays Bank UK PLC trading as Barclaycard

Decision detail

Summary

Mr M complained that Barclaycard lent to him irresponsibly by increasing his credit card limit to £13,800 in January 2020. Barclaycard claimed it had carried out affordability checks but did not provide details. The ombudsman examined Mr M's bank statements from the period and found he had approximately £1,700 in monthly disposable income after essential expenditure, with no signs of financial difficulty. Although Barclaycard failed to document its affordability assessment, the ombudsman concluded that reasonable checks would have supported the lending decision. The complaint was not upheld.

The Ombudsman's reasoning

Although Barclaycard failed to provide details of its affordability assessment, the ombudsman was satisfied that if Barclaycard had examined Mr M's bank statements or calculated his ability to repay in another reasonable way, it would have reached the same lending decision. Mr M's financial position showed sufficient disposable income to sustainably meet the increased repayment obligations, and there were no signs of financial difficulty or pressure on his existing account.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website