Not upheld: Irresponsible lending complaint against Match the Cash Limited

Decision detail

Summary

Miss W complained that MTC irresponsibly lent her £12,000 for debt consolidation in November 2022 without carrying out proportionate checks. MTC conducted open banking verification of three months' income (£3,038.27 including benefits), reviewed her credit file, discussed her circumstances in a call, and calculated she would have £309.51 monthly disposable income after the loan. The investigator upheld the complaint but the ombudsman disagreed, finding the checks proportionate and the lending decision fair. Although Miss W's income later fell by £2,000 and she had defaulted debts, the ombudsman found MTC was entitled to rely on verified recent income and her stated consolidation purpose, which would reduce her credit commitments from 30% to 20% of income. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found MTC's checks were proportionate to the nature and amount of credit. It was reasonable for MTC to include benefit income in affordability analysis per CONC 5.2A.16(G). The resulting 20% credit commitment ratio was not concerning. MTC appropriately considered Miss W's adverse credit history in context of her stated purpose to consolidate debt. The ombudsman accepted MTC's reliance on open banking data and the call with Miss W as sufficient to validate income. There is no obligation on lenders to follow up and verify loans are used as intended. Miss W had opportunity to disclose her temporary income status during the call but did not.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website