Not upheld: Irresponsible lending complaint against MBNA Limited
Financial Ombudsman decision DRN-6236009 of 2026-06-22T00:00:00+00:00. Irresponsible lending complaint against MBNA Limited. Outcome: Not upheld.
Decision detail
| Reference | DRN-6236009 |
|---|---|
| Decision date | 2026-06-22T00:00:00+00:00 |
| Firm | MBNA Limited |
| Product | Personal loan |
| Claim type | Irresponsible lending |
| Outcome | Not upheld |
| Remedy | MBNA to refund £62.34 for interest and fees charged on the loan since opening, and freeze interest on the loan permanently until the balance is paid. Mrs S remains liable for the loan capital. |
Summary
Mrs S complained that MBNA lent irresponsibly when it provided a £10,000 loan that she used for a cryptocurrency investment scam. She argued MBNA should have checked her credit file and seen multiple loans in her name. MBNA accepted the loan may not have been suitable and refunded £62.34 in interest and fees while freezing future interest, but maintained Mrs S was liable for the capital. The ombudsman upheld MBNA's position, finding that because Mrs S personally applied for the loan, accepted the terms, and used the funds herself, MBNA could fairly hold her liable for the capital despite her being a scam victim.
The Ombudsman's reasoning
Although Mrs S was the victim of a scam, she personally applied for the loan, accepted the terms and conditions, and used the funds herself (albeit believing it was for a genuine investment). Therefore, MBNA can fairly hold her liable for the loan capital. The firm's offer to refund interest and fees and freeze interest on the remaining balance is a fair resolution.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| MBNA Limited, all decisions | 3,873 | 28% |
| Irresponsible lending, all decisions | 30,675 | 37% |
| Personal loan, all decisions | 23,643 | 29% |
Source
Read the original decision on the Financial Ombudsman Service website