Not upheld: default application and debt write-off refusal complaint against Barclays Bank UK PLC (trading as Barclaycard)

Decision detail

Summary

Ms T, a victim of domestic abuse experiencing financial hardship following redundancy and reduced working hours, requested that Barclays write off her credit card debt. Barclays placed her account on hold, waived fees and interest, referred her to specialist support, and issued a default notice after determining she had no disposable income. The ombudsman found Barclays acted fairly, as the default protected Ms T from accumulating further debt and she did not meet the criteria for debt write-off despite her vulnerability. The ombudsman determined that Barclays' forbearance measures—including not actively pursuing payment and providing access to support services—constituted appropriate treatment in accordance with regulatory guidance.

The Ombudsman's reasoning

The ombudsman found that while Ms T was vulnerable and experiencing genuine hardship, Barclays was not obligated to write off the debt automatically. The ombudsman reasoned that debt write-off is not automatic for vulnerable consumers, particularly where health issues may not permanently prevent future work and earning capacity, or where the consumer has property assets. The ombudsman determined that the default itself was protective rather than punitive, as it froze the account balance and prevented spiralling interest and charges. Barclays' provision of forbearance measures—suspending interest and fees, not actively pursuing payment, referring to specialist support and debt advisory services—constituted fair treatment in accordance with regulatory guidance.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website