Not upheld: Irresponsible lending complaint against Vanquis Bank Limited

Decision detail

Summary

Mr M complained that Vanquis Bank Limited treated him unfairly by continuing to lend to him and adding interest and charges after he raised affordability concerns in April 2024, which he said worsened his financial situation and credit rating. The ombudsman found that VBL was entitled under the credit agreement to add charges and interest regardless of Mr M's complaint or financial difficulties, and that closing the account would have been premature and potentially more damaging. VBL had proactively offered support in October 2024, which Mr M did not engage with. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman determined that VBL was entitled to add charges and interest in accordance with the credit agreement terms, regardless of Mr M's complaint or financial difficulties. The ombudsman found that closing the account would have been premature and potentially more damaging to Mr M's credit rating. VBL's proactive offer of support in October 2024 demonstrated reasonable conduct, and Mr M's failure to engage with this offer meant VBL was not obliged to do more.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website