Not upheld: irresponsible lending and unaffordable credit complaint against Clydesdale Bank Plc t/a Virgin Money

Decision detail

Summary

Miss F complained that Virgin Money irresponsibly provided her with a credit card in April 2022 without conducting proportionate affordability checks. The card had a £1,800 limit and 0% introductory rate. Miss F complained in January 2026 after the account defaulted and was sold to a third party. The Ombudsman found that Virgin Money's checks were reasonable and proportionate, considering Miss F's £20,000 income, living situation with parents, and clean credit history. Even if the checks were inadequate, Miss F's actual expenditure data showed she had sufficient disposable income to meet the card repayments, making the lending decision fair and not irresponsible.

The Ombudsman's reasoning

The Ombudsman found that Virgin Money's checks were reasonable and proportionate given the nature of the credit (£1,800 credit card), Miss F's circumstances (employed, living with parents, no housing costs), and the information available. Even if the checks were not fully proportionate, the additional information Miss F provided showed she had sufficient disposable income to meet both the card repayments and day-to-day expenditure. Virgin Money was not required to obtain full evidence of expenditure in every case and could reasonably rely on statistical data. The Ombudsman also found no evidence that Virgin Money should have been aware of Miss F's stress, worry and anxiety at the time of issue, and considered each complaint on its own merits rather than being influenced by other lenders' decisions.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website