Not upheld: Irresponsible lending complaint against NATIONAL WESTMINSTER BANK PUBLIC LIMITED COMPANY (NatWest)

Decision detail

Summary

Miss G complained that NatWest irresponsibly approved a credit card with a £10,000 limit in July 2024 with a 19-month 0% promotional rate, arguing that proper checks would have led to rejection. NatWest verified Miss G's income of £3,005, confirmed she had a good credit record and was managing existing debt of around £35,000 satisfactorily, and calculated she could afford the card even after interest commenced. The ombudsman found NatWest's checks were reasonable and proportionate, the lending decision was fair, and there was nothing to suggest Miss G could not sustainably repay the credit. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman concluded that NatWest's checks were reasonable and proportionate given the credit limit offered and what it knew about Miss G's financial situation. The checks showed Miss G had a good credit record, was managing existing credit satisfactorily, and could afford the card even on full utilisation basis after the interest-free period ended, with existing debt of £35,000. The regulatory framework does not require lenders to investigate beyond what borrowers declare or to conduct more extensive checks than those performed. There was nothing in the information gathered to suggest Miss G was unlikely to sustainably repay the credit.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website