Not upheld: irresponsible lending - credit limit increases without adequate affordability checks complaint against J D Williams & Company Limited

Decision detail

Summary

Mr C complained that J D Williams lent to him irresponsibly by approving a mail order credit account in August 2024 and subsequently increasing credit limits on two accounts (the original account and a Jacamo account opened in March 2025) without conducting adequate affordability checks. Mr C claimed the increases encouraged excessive borrowing and caused financial hardship. J D Williams rejected the complaint regarding the first account but offered a partial refund for the Jacamo account. The ombudsman found that J D Williams conducted proportionate affordability assessments using credit reference agency checks and account management data, which consistently showed Mr C had low debt, was managing credit well, and making regular payments. The ombudsman concluded that the lending decisions were fair and compliant with regulations, and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman applied CONC regulations requiring proportionate affordability assessments to ensure sustainable repayment. The checks must be borrower-focused and proportionate to the specific circumstances. J D Williams completed full credit checks showing stable financial position with low debt levels and good payment history. The credit limits were modest and increased gradually. Mr C was not using accounts to their limits and was making regular payments, indicating appropriate account management. There was nothing in the credit reports or account history to suggest financial difficulty or that further checks were required. The ombudsman found the checks proportionate and lending decisions fair at each stage.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website