Not upheld: Irresponsible lending complaint against Match the Cash Limited

Decision detail

Summary

Mrs T complained that Match the Cash lent irresponsibly when providing a £6,000 personal loan in June 2023 at 48.9% APR with £290.34 monthly payments, claiming it was unaffordable given her household's financial difficulties caused by her husband's gambling addiction. Match the Cash had verified her £1,800 monthly income through open banking, reviewed her credit file showing no recent arrears, and calculated disposable income of £796 after estimated essential expenditure of £912. The ombudsman found the firm conducted proportionate checks appropriate for the loan size, reasonably accepted Mrs T's expense explanations, and that the husband's gambling addiction was not something standard lending checks could have uncovered. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied FCA CONC rules requiring reasonable and proportionate checks to ensure sustainable repayment. Match the Cash verified Mrs T's income through open banking, obtained credit reference data showing no recent arrears, conducted a telephone interview where Mrs T explained her circumstances, and calculated disposable income of £796 against a proposed payment of £290.34. The ombudsman found these checks proportionate for the loan size and that Match the Cash reasonably accepted Mrs T's explanations about her expenses. The husband's gambling addiction could not have been uncovered through standard lending checks as it was not disclosed.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website