Not upheld: Irresponsible lending complaint against The One Stop Money Shop Limited

Decision detail

Summary

Mr U complained that One Stop irresponsibly lent him £400 in January 2024 when he could not afford to repay it. One Stop verified his income at £2,650 monthly and assessed his outgoings at £1,445 based on credit file and open banking data, concluding the loan was affordable. Mr U's credit search revealed a settled 2019 default and one missed payment in October 2021 that was subsequently resolved, but no current signs of over-indebtedness. Although Mr U later experienced repayment difficulties and his personal credit report showed more adverse information than what One Stop received, the ombudsman found One Stop's checks were proportionate and the lending decision reasonable based on the information available at the time. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that One Stop's checks were proportionate for a first loan. The firm verified Mr U's income through open banking (£2,650 monthly), assessed outgoings at £1,445 based on credit file and open banking data, and conducted a credit search. The credit search revealed historical issues (a settled 2019 default and one missed payment in October 2021 that was resolved) but no current signs of financial difficulty or over-indebtedness. The ombudsman accepted that differences existed between Mr U's personal credit report and what One Stop received, but relied on what One Stop actually saw. Based on the available information, the loan appeared affordable with a monthly surplus, and the credit information did not warrant further checks or loan decline.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website