Not upheld: account closure / breach of credit limit complaint against Barclays Bank UK PLC trading as Barclaycard

Decision detail

Summary

Mr O complained that Barclaycard unfairly closed his credit card account on 26 November 2025, claiming he was vulnerable and relied on the card for essentials. Barclaycard closed the account immediately after reviewing his spending and payment activity. The ombudsman found that Mr O had repeatedly breached the account agreement by exceeding his £400 credit limit significantly—spending £546 in October 2025 and over £1,450 in November 2025 through multiple transactions between statement dates. Although Mr O maintained minimum payments and claimed vulnerability, the ombudsman determined that Barclaycard acted fairly, transparently, and in accordance with its terms and conditions and Consumer Duty obligations by explaining the closure reasons and not treating him differently from other customers. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Mr O breached the account agreement by repeatedly exceeding the £400 credit limit, particularly in October and November 2025 when spending was 4+ times the limit. The terms and conditions permitted immediate closure if the agreement was broken regularly or seriously. Barclaycard acted transparently by explaining its reasons and did not treat Mr O differently from other customers in similar circumstances. The Consumer Duty obligation to act in good faith and avoid foreseeable harm was satisfied through transparent communication and fair treatment. Past identity theft was irrelevant as there was no suggestion the Barclaycard account itself was fraudulently opened.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website