Not upheld: irresponsible lending and unfair credit relationship complaint against Barclays Bank UK PLC

Decision detail

Summary

Mrs P complained to Barclays Bank in June 2025 that she had been irresponsibly lent to across five loans obtained between 2011 and 2017. Loans one to four formed a consolidation chain while loan five was standalone. The ombudsman found that complaints about loans one to four were outside FOS jurisdiction as they were brought more than six years after the events and Mrs P should have become aware of her cause for complaint between 2015-2017. For loan five, although the lending decision occurred over six years prior, the complaint could be considered under Section 140A unfair relationship provisions since the loan closed within six years. However, based on bank statements showing Mrs P had disposable income of approximately £542 monthly after accounting for the £374 loan repayment, the ombudsman concluded Barclays Bank had made a fair lending decision and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that complaints about loans one to four were outside FOS jurisdiction as they were brought more than six years after the events and more than three years after Mrs P ought reasonably to have become aware of her cause for complaint. Although Mrs P claimed financial stress prevented earlier complaint, the ombudsman determined she should have apportioned blame to Barclays Bank when applying for loans she knew were unaffordable. For loan five, while the lending decision occurred more than six years ago, the loan closed within six years, allowing consideration under Section 140A unfair relationship provisions. However, based on bank statements showing disposable income of approximately £542 monthly after the £374 loan repayment, the ombudsman concluded Barclays Bank made a fair lending decision.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website