Not upheld: irresponsible lending complaint against MBNA Limited

Decision detail

Summary

Mr C complained that MBNA irresponsibly lent him a £5,600 credit card in December 2021, arguing that the affordability assessment did not accurately reflect his housing costs, living costs, and wider financial commitments. MBNA and the FOS investigator defended the lending decision as proportionate. The ombudsman found that MBNA's checks were proportionate, including CRA data review, use of modelling to verify living costs beyond Mr C's declarations, and calculation of approximately £397 monthly disposable income. With no adverse credit history and sustainable repayment capacity, the ombudsman did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that MBNA's proportionate checks included reviewing CRA data, Mr C's declared income and outgoings, calculating credit commitments from CRA information, and using modelling to verify living costs. The ombudsman was satisfied that MBNA used the higher modelling figure for living costs rather than relying solely on Mr C's declarations, demonstrating thorough assessment. With approximately £397 monthly disposable income available and no adverse credit history, the ombudsman concluded the lending decision was fair and sustainable.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website