Not upheld: irresponsible lending complaint against National Westminster Bank Public Limited Company

Decision detail

Summary

Mrs E complained that NatWest irresponsibly provided her with a £4,000 credit card in October 2022. NatWest had conducted a CRA check and affordability assessment showing Mrs E had sufficient disposable income and no adverse credit markers. Mrs E argued the checks did not capture all her essential expenditure and referenced a separate upheld complaint. The ombudsman found NatWest's checks were reasonable and proportionate to the circumstances, the affordability calculation was sound, and no irresponsible lending occurred. The complaint was not upheld and no remedy was ordered.

The Ombudsman's reasoning

The ombudsman found NatWest's pre-lending checks were reasonable and proportionate to the level of potential borrowing and Mrs E's known circumstances. The CRA data showed good credit management with no adverse markers, and the affordability calculation demonstrated sufficient disposable income. A more detailed expenditure review was not required given the proportionality of the checks to the circumstances. The ombudsman also noted that each case is decided on its individual merits and previous outcomes do not set precedents.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website