Not upheld: irresponsible lending complaint against Clydesdale Bank Plc trading as Virgin Money

Decision detail

Summary

Mrs G complained that Virgin Money irresponsibly provided her with a £3,500 credit card in January 2023. Virgin Money had conducted CRA checks validating her income, reviewed her credit commitments showing no adverse information, and assessed her household expenditure. The ombudsman found that these checks were reasonable and proportionate for the credit limit offered, and that Mrs G's good repayment history and calculated sufficient disposable income meant there was nothing to suggest she could not sustainably repay the credit. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Virgin Money's pre-lending checks were reasonable and proportionate for the credit limit offered. The CRA validation of income, review of credit commitments showing no adverse information, and assessment of household expenditure were sufficient. Mrs G's good repayment history and calculated sufficient disposable income meant there was nothing to suggest she was unlikely to sustainably repay the credit. No further evidence was required before providing the facility.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website