Not upheld: credit limit reduction and alleged discrimination complaint against TSB Bank plc

Decision detail

Summary

X complained that TSB reduced her credit limit from £15,000 to £500 after she cancelled her direct debit and made a payment of £200 that fell short of the required minimum payment of £256.33. X claimed she had never missed a payment in 25 years and attributed the reduction to discrimination based on her health issues, as she was not working due to health reasons. The ombudsman found that TSB correctly reported a missed payment because the amount paid did not meet the minimum required, and that TSB was contractually entitled to reduce the credit limit with prior notice. The ombudsman found no evidence that X's health issues were known to TSB at the time of the reduction or that they motivated the decision, and therefore did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that although X made a payment of £200 before the due date of 8 August 2025, it did not meet the required minimum payment of £256.33, therefore TSB correctly reported a missed payment. Regarding the credit limit reduction, TSB was contractually entitled to amend the credit limit at any time with prior notice. The ombudsman found no evidence that X's health issues were known to TSB at the time of the reduction or that they were the reason for it, and therefore could not find discrimination.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website