Not upheld: Irresponsible lending complaint against Ferratum UK Ltd

Decision detail

Summary

Ms M complained that Ferratum UK Ltd lent to her irresponsibly across three loans in 2014, arguing her low income, high expenses, and existing judgment debt should have prevented approval. Ferratum held conflicting financial information about Ms M and did not seek clarification before approving loan 3. However, the ombudsman found insufficient evidence to determine irresponsible lending, as the bank statements provided by Ms M showed an account in credit at the time of lending. The complaint was not upheld due to evidentiary gaps and the ombudsman's inability to definitively establish Ms M's actual financial position and whether she could sustainably repay the loans.

The Ombudsman's reasoning

The ombudsman acknowledged significant evidentiary gaps and conflicting information from both parties. While Ferratum held conflicting financial data about Ms M and should have sought clarification before approving loan 3, the bank statements provided by Ms M (assuming they were hers) showed an account in credit with additional funds being paid in, suggesting she may have been able to afford the loans. Without clear evidence of Ms M's actual financial position, credit file, or proof she could not sustainably repay, the ombudsman could not conclude the lending was irresponsible.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website