Not upheld: irresponsible lending complaint against Barclays Bank UK plc trading as Tesco Bank

Decision detail

Summary

Mr A complained that Tesco Bank lent him £5,000 irresponsibly in July 2025 for an 84-month loan. Mr A argued that Tesco should have discovered his harmful gambling spending and mental health difficulties, and should have conducted more extensive checks including reviewing his bank statements or using open banking data. The ombudsman found that Tesco's checks were reasonable and proportionate, that Mr A had not disclosed his gambling difficulties prior to the loan, and that there was nothing in the information available to Tesco to suggest he could not sustainably repay. The complaint was not upheld and no remedy was ordered.

The Ombudsman's reasoning

The ombudsman concluded that Tesco's checks were reasonable and proportionate given the size of the credit offered. Although Mr A was spending harmfully on gambling, Tesco could not reasonably have been aware of this as Mr A did not disclose it prior to the loan. The ombudsman rejected arguments that Tesco should have reviewed banking transactions or used open banking checks, finding that the checks actually carried out were sufficient. The ombudsman also considered the complaint under section 140A of the Consumer Credit Act 1974 but found no unfairness.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website