Not upheld: Service failures generally complaint against Barclays Bank UK PLC trading as Barclaycard

Decision detail

Summary

Miss H complained that Barclaycard lent irresponsibly when approving a £9,500 credit card in April 2025, citing her existing financial difficulties, overdraft dependency, and high credit utilisation. She also claimed the 0% purchase offer was misleadingly presented. Barclaycard verified Miss H's income at £2,100 monthly net, assessed essential spending at approximately £1,265, and found £308.86 disposable income after a £100 buffer, with no adverse credit history. The ombudsman found the checks proportionate and fairly considered, accepting that the card would reasonably be used for consolidation of £6,571 in existing credit card debt, leaving the lending affordable. The promotional offer terms were clearly stated in the credit agreement. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman assessed whether Barclaycard's checks were proportionate to the type, amount and borrower's circumstances, and whether the information was fairly considered. The checks verified income at £2,100 monthly net, identified essential spending of approximately £1,265, and found £308.86 disposable income after a £100 buffer. Critically, the ombudsman accepted that Barclaycard could reasonably expect the card would be used for consolidation purposes, absorbing nearly all existing credit card debt. On this basis, the lending was affordable with over £100 remaining disposable income. The ombudsman also noted that bank statements reviewed post-decision showed Miss H's actual income was higher and essential spending lower than assessed, further supporting the fairness of the lending decision. Regarding the promotional offer, the terms clearly stated that interest would be charged at standard rates after the promotional period ended.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website