Not upheld: irresponsible lending complaint against Vanquis Bank Limited

Decision detail

Summary

Miss G complained that Vanquis Bank irresponsibly lent to her by providing a credit card in January 2022 with an initial limit of £250, subsequently increased to £500, £850, and £1,450. Miss G argued that Vanquis' affordability checks were inadequate and that the firm should have identified her debt management plan and financial difficulties. The ombudsman found that Vanquis conducted reasonable and proportionate checks using credit reference agency data and affordability assessments, which showed sufficient disposable income at each stage. Although historical arrears were noted, the ombudsman considered them insufficient to render the lending irresponsible given the modest amounts involved. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Vanquis carried out reasonable and proportionate checks given the modest amounts of credit being provided. The affordability assessments showed sufficient disposable income at each stage. Although historical arrears were present, they were not considered sufficient grounds for refusing credit given the modest amounts involved and Miss G's income. The ombudsman noted that Vanquis was entitled to rely on credit checks and was not responsible for identifying information Miss G did not disclose, such as her debt management plan.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website