Upheld: misleading communication / unfair treatment in credit limit increase offer complaint against Barclays Bank UK PLC trading as Tesco Bank

Decision detail

Summary

Mr B received an email from Tesco Bank on 16 December 2025 stating he was eligible for a credit limit increase from £6,300 to £8,300. He applied via the mobile app within minutes but was immediately declined. Mr B complained that the email was misleading as it suggested the increase was already approved. Tesco Bank argued the email was an eligibility notification and made clear that requests would be reviewed at application time. The ombudsman upheld the complaint, finding the email's specific figures, reference to already-held information, and statement that no credit checks would be involved gave the impression approval was a formality. Tesco Bank was ordered to pay £75 compensation for the distress and inconvenience caused.

The Ombudsman's reasoning

The ombudsman found the email misleading because it contained specific figures, referenced information already held and assessed by the firm, and stated that no credit checks would be involved in the application process. These elements combined gave a reasonable customer the impression that the credit limit increase was already approved and the application would be a formality. Although the email included a disclaimer about circumstances changing, the overall wording created an expectation of approval. The ombudsman was not satisfied that the decline decision was reached fairly as Tesco Bank could not explain the specific reason for the decline.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website