Not upheld: Irresponsible lending complaint against MBNA Limited

Decision detail

Summary

Miss J complained that MBNA irresponsibly lent to her when providing a credit card with a £4,200 limit in April 2021, claiming insufficient affordability checks were undertaken. MBNA defended their decision, stating they had carried out proportionate checks that revealed no concerns. The ombudsman found that MBNA's checks—including CRA data, application information, and affordability assessment—were appropriate and showed Miss J had sufficient disposable income (approximately £1,165 monthly) to sustain repayments, with no adverse credit history. The complaint was not upheld, as the information available to MBNA at the time of lending did not indicate Miss J would struggle to repay sustainably.

The Ombudsman's reasoning

The ombudsman found that MBNA's affordability checks were proportionate to the circumstances of the lending. The checks included CRA data, application information, and affordability assessment, which together did not raise any concerns about Miss J's ability to repay sustainably. The information showed Miss J had significant disposable income (approximately £1,165 monthly) after accounting for housing costs, existing credit commitments, and general living expenses. The ombudsman's independent review of Miss J's credit file confirmed her credit was being managed well with no late payments. Any financial difficulties Miss J later experienced would not have been apparent to MBNA at the time of lending.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website