Not upheld: irresponsible lending and failure to provide support during repayment difficulties complaint against Vanquis Bank Limited

Decision detail

Summary

Mr W complained that Vanquis Bank Limited irresponsibly lent him £1,000 on a credit card in January 2020 and failed to provide support when he struggled with repayments. The ombudsman found that Vanquis' initial credit checks were reasonable and proportionate, with nothing suggesting Mr W could not sustainably repay at the time of lending. Although Mr W's financial situation deteriorated (due to redundancy and subsequent non-full-time employment), Vanquis complied with persistent debt requirements by taking appropriate steps at 18, 27, and 36-month milestones, providing clear guidance, and offering a payment plan. The complaint was not upheld as Vanquis acted fairly and Mr W did not engage with support offered until after persistent debt action was taken.

The Ombudsman's reasoning

The ombudsman found that Vanquis' initial credit checks were reasonable and proportionate for the credit limit offered, with no information suggesting Mr W could not sustainably repay. The lending became unaffordable over time rather than at inception. Vanquis complied with persistent debt guidance by taking appropriate steps at required milestones, providing clear advice about the situation, and offering a payment plan. Mr W did not engage with Vanquis' offers of support until after persistent debt action was taken.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website