Not upheld: irresponsible lending and unfair treatment during persistent debt complaint against Vanquis Bank Limited

Decision detail

Summary

Mr C complained that Vanquis Bank Limited treated him unfairly over several years while he was in persistent debt on his credit card account, specifically regarding multiple interest rate increases and credit limit increases. Vanquis provided written notice before each interest rate increase with the option to cancel, conducted affordability assessments before credit limit increases, and complied with persistent debt regulations by sending communications at required thresholds. The ombudsman found that Vanquis acted fairly based on the information available to it, noting that Mr C made a significant overpayment before the final increase in March 2023, which was a positive affordability indicator. Although Mr C disclosed an ADHD diagnosis in March 2025, Vanquis was unaware of this and had no other information suggesting it should provide additional support. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Vanquis provided fair notice of interest rate increases with the option to cancel, conducted affordability assessments before credit limit increases using available information, and complied with persistent debt regulations. The significant overpayment made by Mr C prior to the March 2023 increase was a positive affordability indicator. Although Mr C was in persistent debt, Vanquis met all regulatory obligations and had no knowledge of circumstances that should have triggered additional support.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website