Upheld: irresponsible lending and failure to exercise forbearance complaint against J D Williams & Company Limited
Financial Ombudsman decision DRN-6331521 of 2026-05-21T00:00:00+00:00. irresponsible lending and failure to exercise forbearance complaint against J D Williams & Company Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6331521 |
|---|---|
| Decision date | 2026-05-21T00:00:00+00:00 |
| Firm | J D Williams & Company Limited |
| Product | credit account / catalogue shopping account |
| Claim type | irresponsible lending and failure to exercise forbearance |
| Outcome | Upheld |
| Remedy | JD Williams must: (1) rework the account removing all interest, fees and charges from 11 March 2025 onwards (in addition to amounts already refunded from 7 July 2022); (2) if rework results in credit balance, refund to Miss G with 8% simple interest per year from date of each overpayment; (3) if balance remains outstanding, arrange affordable repayment plan; (4) remove all adverse information from Miss G's credit file from 11 March 2025 onwards once balance is cleared or credit is refunded. |
Summary
Miss G complained that JD Williams lent irresponsibly by approving a catalogue shopping account and seven subsequent credit limit increases without conducting proportionate affordability checks. While JD Williams had already partially upheld the complaint regarding increases from £800 onwards, the ombudsman found the firm also acted unfairly at account opening and the first three increases by failing to consider Miss G's income of approximately £1,200-£1,450 monthly, though the lending would have been affordable had proper checks been conducted. Additionally, the ombudsman found JD Williams failed to exercise adequate forbearance from March 2025 when Miss G disclosed mental health struggles and unemployment, requiring the firm to freeze interest and charges from that date. The ombudsman upheld the complaint and ordered JD Williams to rework the account removing all interest, fees and charges from 11 March 2025 onwards, refund any credit balance with interest, and remove adverse credit file information from that date.
The Ombudsman's reasoning
The ombudsman found that while JD Williams relied on CRA data showing no negative markers at account opening, they failed to conduct proportionate checks by not considering Miss G's income. Bank statements showed Miss G had modest income of around £1,200 monthly, which would have supported the initial lending and first three increases as affordable, but the firm should have asked for this information. However, from March 2025 onwards, when Miss G disclosed mental health struggles and unemployment, JD Williams failed to exercise adequate forbearance by not freezing interest and charges despite her inability to pay and being overlimit on the account.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| J D Williams & Company Limited, all decisions | 361 | 31% |
Source
Read the original decision on the Financial Ombudsman Service website