Not upheld: irresponsible lending - insufficient affordability checks complaint against Clydesdale Bank Plc trading as Virgin Money

Decision detail

Summary

Miss S complained that Virgin Money lent irresponsibly when granting her two credit cards (£3,600 limits in March 2023 and May 2025) by failing to conduct sufficient affordability checks. She argued that proper checks would have revealed she could not afford the lending and was under financial stress. Virgin Money maintained that reasonable checks were performed and the credit file showed no distress. The ombudsman found that Virgin Money's checks were reasonable and proportionate, the credit file contained no adverse indicators, and multiple affordability calculations confirmed sufficient disposable income existed to support sustainable repayments, therefore not upholding the complaint.

The Ombudsman's reasoning

The ombudsman found that Virgin Money's checks were reasonable and proportionate given the credit amounts offered and the positive credit report findings. The credit file contained no indicators of financial distress. Multiple affordability calculations (by Virgin Money, the investigator, and the ombudsman) all demonstrated sufficient disposable income to support sustainable repayments. Data modelling used was consistent with accepted industry practice and there was no evidence suggesting Miss S's actual circumstances would deviate significantly from the models.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website