Not upheld: Persistent overdraft use complaint against Vanquis Bank Limited

Decision detail

Summary

The customer complained that Vanquis Bank Limited blocked his credit card without warning after he agreed to a fixed monthly payment plan to address 36 months of persistent debt. Vanquis had sent letters on 5 February 2024 and 4 April 2024 explaining the persistent debt situation and the consequences of the payment plan, including card suspension. The customer claimed he did not receive the initial letter but confirmed receipt during a 25 March 2024 call with Vanquis. The customer later argued that Vanquis should have considered his vulnerability and medical conditions. The ombudsman found the complaint not upheld, determining that Vanquis provided adequate notice and that there was no evidence the firm knew or should have known about the customer's claimed vulnerabilities.

The Ombudsman's reasoning

The ombudsman found that Vanquis complied with FCA persistent debt requirements by providing clear written notice of the account restriction options at both the 36-month intervention point and upon implementation of the payment plan. The customer's own confirmation during the 25 March 2024 call that he had received the February letter, combined with correct addressing of all correspondence, established that the customer had adequate notice. The customer's claim regarding vulnerability could not be upheld because there was no evidence that Vanquis knew or ought to have known about any medical conditions or vulnerabilities, as the customer did not disclose these to the firm.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website