Not upheld: irresponsible lending and inadequate affordability checks complaint against Vanquis Bank Limited

Decision detail

Summary

Miss C complained that Vanquis Bank Limited irresponsibly provided her with a credit card in September 2022 with an initial limit of £1,200 and subsequently increased it to £2,100 in March 2025, claiming the credit was unaffordable and affordability checks were inadequate. Miss C was unemployed and living off benefits when she applied, with a previous Debt Relief Order. The ombudsman found that while Vanquis should have requested evidence of income given Miss C's circumstances, such evidence would have confirmed her stated income was accurate and the credit was affordable. The firm's affordability assessments at both stages were reasonable and proportionate, and Miss C's credit history showed no recent issues. The complaint was not upheld.

The Ombudsman's reasoning

While Vanquis should have requested evidence of income given Miss C's unemployment and previous Debt Relief Order, the ombudsman found that such evidence would have confirmed her declared income was accurate and that the credit was affordable. The firm's affordability assessments at both stages were based on reasonable assumptions about expenditure using statistical data, and Miss C's credit history showed no recent issues. The credit limit increase in March 2025 was also reasonable given Miss C's improved circumstances (now employed) and continued satisfactory account management.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website