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

Decision detail

Summary

Mr M complained that Barclays treated him unfairly when he disclosed financial difficulties after being provided a £4,000 credit card in September 2024. Barclays upheld the complaint about irresponsible lending and refunded all interest and charges, but refused Mr M's request to write off the outstanding balance of approximately £3,300. Mr M provided medical evidence of a condition affecting impulse control and financial obligations, and later requested a new credit card to help repay the debt. The ombudsman found Barclays' refund of interest and charges to be appropriate redress and declined to order a full write-off, as Mr M had benefited from the credit and his request for another card suggested sufficient income.

The Ombudsman's reasoning

The ombudsman applied the standard approach for irresponsible lending complaints: the borrower should repay the amount lent while the lender refunds interest, fees and charges. The ombudsman reasoned that Mr M had the benefit of using the credit provided, and that Barclays' refund of interest and charges appropriately rectified the wrong. The ombudsman noted that Barclays were unaware of Mr M's condition at the time of lending and that Mr M's subsequent request for another credit card suggested he had sufficient income, making a full write-off inappropriate.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website