Not upheld: irresponsible lending complaint against HSBC UK Bank plc

Decision detail

Summary

Miss A complained that HSBC lent to her irresponsibly when providing a £9,000 credit card in May 2022, claiming HSBC failed to account for her vulnerabilities and challenging domestic circumstances. HSBC rejected the complaint, and an FOS investigator agreed the lending was not irresponsible. The ombudsman found that HSBC carried out reasonable and proportionate affordability checks, including income verification via CRA, disposable income estimation of £1,100, and credit checks showing well-managed existing debt. The ombudsman noted Miss A did not disclose her vulnerable position to HSBC and that she benefitted from a 0% balance transfer promotion. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that HSBC carried out reasonable and proportionate affordability checks by combining CRA data, income verification, and statistical modelling to assess Miss A's financial situation. The credit check showed no adverse indicators. The ombudsman noted that Miss A did not disclose her vulnerable circumstances to HSBC, so the firm could not have been expected to account for them. Additionally, Miss A benefitted from the 0% balance transfer promotion, saving on fees and interest.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website