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

Decision detail

Summary

Mr M complained that two loans from The One Stop Money Shop Limited (£400 in June 2022 and £800 in September 2023) were unaffordable, citing his maxed-out credit cards, multiple loans, a CCJ, and hidden gambling problems. The One Stop Money Shop had validated his income via payslip and conducted credit file checks, finding the loans sustainably affordable. The ombudsman found that the firm's checks were reasonable and proportionate for both loans, with enhanced checks appropriately applied to the second loan using Open Banking data. The complaint was not upheld as the ombudsman concluded fair lending decisions were made based on the information available to the firm at the time.

The Ombudsman's reasoning

The ombudsman found that The One Stop Money Shop carried out reasonable and proportionate checks for both loans. For Loan 1, the checks were proportionate given the short six-month term, small repayment proportion relative to income, relatively small existing borrowing, and the historic nature of the CCJ. For Loan 2, enhanced checks were appropriately conducted due to the longer term and repeated borrowing, including Open Banking verification which showed disposable income of approximately £700. The ombudsman concluded that based on the available information at the time, the loans were sustainably affordable and fair lending decisions were made. The ombudsman acknowledged Mr M's hidden gambling issues but found it would not have been proportionate to require checks at the level needed to uncover such issues.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website