Not upheld: irresponsible lending - overdraft increase complaint against Bank of Scotland plc, trading as Halifax

Decision detail

Summary

Miss W complained that Halifax irresponsibly increased her overdraft to £1,800 on 18 September 2024. Halifax had verified her income, completed affordability calculations, checked her external credit (£430 owed), and found no adverse credit markings. The ombudsman reviewed the overdraft increase decision and account usage from September 2024 to October 2025, finding Halifax's checks were reasonable and proportionate. Even upon reviewing Miss W's detailed account statements, there was insufficient evidence she was over-extending or unable to repay sustainably. The complaint was not upheld, though Halifax was directed to provide Miss W with alternative support contact details and had already refunded some interest and charges.

The Ombudsman's reasoning

The ombudsman found Halifax's checks were reasonable and proportionate for the overdraft increase. The checks demonstrated the overdraft was likely affordable and repayable on a sustainable basis. Even when reviewing Miss W's current account statements and other account statements, there was insufficient evidence to suggest she was over-extending her borrowing or unable to repay on a sustainable basis. Regarding support concerns, Halifax provided alternative support channels and had already refunded interest and charges.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website