Not upheld: irresponsible lending and unfair treatment during financial difficulties complaint against Curve UK Limited

Decision detail

Summary

Mr L complained that Curve irresponsibly increased his credit card limit to £3,400 in January 2025 and failed to treat him fairly when he later experienced financial difficulties, resulting in account default in September 2025. Curve had conducted affordability checks including income verification, expenditure analysis, and credit file review, which suggested Mr L could sustainably repay. Although Mr L's bank statements showed heavy gambling expenditure at the time of the increase, the ombudsman found that Curve's automated checks were proportionate and not required to identify such transaction-level details. When Mr L later reported difficulties, Curve provided a 30-day breathing space but defaulted the account after Mr L failed to make promised payments and demonstrated no disposable income. The ombudsman upheld Curve's position, finding the checks proportionate and the treatment fair.

The Ombudsman's reasoning

The ombudsman found that Curve's affordability checks were proportionate to the circumstances, including the credit limit increase amount and Mr L's financial profile. The checks revealed Mr L was managing credit well with a strong credit score and sufficient disposable income. Although Mr L's bank statements showed gambling expenditure, the ombudsman determined that automated open banking checks used by Curve were not required to identify such transaction-level details, and Mr L did not disclose this information. Regarding the default, the ombudsman found that Curve provided appropriate forbearance through a breathing space period, but was entitled to default the account when Mr L failed to make promised payments and demonstrated no disposable income for repayment.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website