Not upheld: irresponsible lending complaint against Barclays Bank UK PLC trading as Barclaycard

Decision detail

Summary

Miss F complained that Barclaycard irresponsibly lent her £16,700 on a credit card in January 2024 when she was unemployed, reliant on benefits, and heavily indebted. Barclaycard investigated and upheld the complaint, refunding £2,446.27 in interest and fees and suspending all charges indefinitely. Miss F sought further action, wanting the remaining balance written off, but the ombudsman found Barclaycard's remedy was sufficient and fair. The ombudsman did not uphold the complaint, reasoning that while the lending was irresponsible, Miss F had the use of the money and should repay the principal amount, with the remedy already provided being appropriate.

The Ombudsman's reasoning

The ombudsman accepted that Barclaycard had already upheld the complaint and acknowledged the lending was irresponsible. The remedy provided by Barclaycard (refunding all interest and fees, suspending charges indefinitely, and removing adverse credit file information) was in line with the ombudsman's own approach to such complaints. The ombudsman considered it fair that Miss F should repay the principal amount she was lent, as she had the use of the money, even though the lending decision was irresponsible. The ombudsman also considered and rejected arguments under Section 140A of the Consumer Credit Act 1974.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website