Partially upheld: irresponsible lending and failure to take appropriate forbearance action complaint against MBNA Limited
Financial Ombudsman decision DRN-6345003 of 2026-05-08T00:00:00+00:00. irresponsible lending and failure to take appropriate forbearance action complaint against MBNA Limited. Outcome: Partially upheld.
Decision detail
| Reference | DRN-6345003 |
|---|---|
| Decision date | 2026-05-08T00:00:00+00:00 |
| Firm | MBNA Limited |
| Product | credit card |
| Claim type | irresponsible lending and failure to take appropriate forbearance action |
| Outcome | Partially upheld |
| Remedy | MBNA must: (1) rework the account to remove all interest, fees and charges applied to sums exceeding the agreed credit limit; (2) if this results in a credit balance, refund it with 8% simple interest from date of overpayment to settlement; (3) if an outstanding balance remains, arrange an affordable and sustainable repayment plan; (4) remove all relevant adverse information from Miss S's credit file at the appropriate time. |
Summary
Miss S complained that MBNA irresponsibly provided her with a credit card that was unaffordable and failed to offer forbearance when she experienced financial difficulties. The ombudsman found that MBNA's affordability checks at card issuance (June 2023) and limit increase (December 2023) were reasonable and proportionate, with Miss S appearing to manage her credit well at both stages. However, when Miss S began exceeding her credit limit from March 2025 onwards due to retail transactions, MBNA failed to take appropriate action by declining transactions or blocking the account, allowing her to accumulate unnecessary interest charges. The complaint was partially upheld, requiring MBNA to rework the account to remove interest and charges on over-limit amounts and provide appropriate redress.
The Ombudsman's reasoning
MBNA's affordability checks at both card issuance and limit increase were reasonable and proportionate, with no requirement to see full bank statements. However, once Miss S exceeded the credit limit from March 2025 onwards, MBNA failed to take appropriate action. While text messages and over-limit letters were sent, MBNA should have declined transactions or blocked the account to prevent further interest accumulation on over-limit amounts. The ombudsman found discrepancies between the dates when the card was over-limit and dates of declined transactions, indicating Miss S likely paid interest when she should not have.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| MBNA Limited, all decisions | 3,866 | 28% |
Source
Read the original decision on the Financial Ombudsman Service website