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

Decision detail

Summary

Miss S complained that Barclaycard irresponsibly provided her with a £4,000 credit card in January 2024. She argued the firm's checks failed to capture her full essential expenditure due to dependants' needs and did not account for her health and personal difficulties. The ombudsman found Barclaycard's pre-lending checks were reasonable and proportionate, with CRA data confirming sufficient income and good credit history. Since Miss S did not disclose her personal circumstances to Barclaycard at the time of application, the firm could not fairly be expected to consider them. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found Barclaycard's pre-lending checks were reasonable and proportionate to the level of borrowing. The CRA verification showed Miss S had sufficient income and was managing credit well. The checks did not need to be more detailed as they were appropriate to the circumstances. Critically, Miss S did not disclose her health and personal difficulties to Barclaycard at the time of lending, so it would be unfair to expect the firm to have considered them. The ombudsman also considered the Consumer Credit Act 1974 s.140A but found no unfairness.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website