Not upheld: Irresponsible lending complaint against Barclays Bank UK PLC, trading as Tesco Bank

Decision detail

Summary

Mr O complained that Barclays Bank UK PLC, trading as Tesco Bank, irresponsibly provided him with a credit card with a £3,400 limit in 2025. The ombudsman reviewed Tesco's pre-lending checks, which verified Mr O's net monthly income at £2,250, identified existing unsecured debt of £6,676, and estimated monthly expenses at £1,236. Tesco's affordability assessment factored in £170 monthly repayments for the credit card and concluded Mr O would have approximately £570 of disposable income remaining. The ombudsman found the checks were reasonable and proportionate, and that nothing in the information gathered suggested Mr O would be unable to sustainably repay the credit. The complaint was not upheld, and no remedy was ordered.

The Ombudsman's reasoning

The ombudsman found that Tesco's pre-lending checks were reasonable and proportionate given the credit limit offered. The affordability assessment showed Mr O would have approximately £570 of disposable income remaining monthly after accounting for all non-discretionary expenses and estimated credit card repayments. Based on the information gathered, there was nothing to suggest Mr O was likely to be unable to sustainably repay the credit. The ombudsman rejected Mr O's argument that statistical data did not represent his true financial situation, noting that Tesco's assessment factored in repayments for the full credit limit being used and those repayments appeared affordable. The ombudsman also found no unfairness under section 140A of the Consumer Credit Act 1974.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website