Upheld: Irresponsible lending complaint against 247 Money Group Limited
Financial Ombudsman decision DRN-5742465 of 2025-12-08T00:00:00+00:00. Irresponsible lending complaint against 247 Money Group Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-5742465 |
|---|---|
| Decision date | 2025-12-08T00:00:00+00:00 |
| Firm | 247 Money Group Limited |
| Product | Motor finance (PCP / HP) |
| Claim type | Irresponsible lending |
| Outcome | Upheld |
| Remedy | 247 Money must: (1) end the agreement with nothing further to pay; (2) calculate total payments made and deduct £6,657 for fair use; (3) refund overpayments with 8% simple yearly interest from date of payment; (4) remove adverse credit file information regarding the agreement; (5) if arrears remain, arrange an affordable repayment plan with forbearance. |
Summary
Ms B complained that 247 Money irresponsibly lent to her by failing to conduct adequate affordability checks before approving a hire purchase agreement for a car with £340.17 monthly repayments. Although 247 Money verified her income at £1,709.27 per month and conducted a credit search, it did not investigate her essential expenditure despite evidence of recent payment difficulties and a historical default. The ombudsman upheld the complaint, finding that reasonable checks would have revealed Ms B had insufficient disposable income after essential expenses to sustainably afford the repayments. The remedy requires 247 Money to unwind the agreement, allowing Ms B to pay only £221.90 monthly for fair usage of the car (totalling £6,657), with all overpayments refunded plus interest and adverse credit information removed.
The Ombudsman's reasoning
The ombudsman found that 247 Money's checks were insufficient because although it verified income, it failed to obtain information about Ms B's essential expenditure. Given the size and duration of the loan, the monthly repayments of £340.17, and the credit search showing recent payment difficulties, more thorough checks were warranted. Using bank statements to determine what reasonable checks would likely have revealed, the ombudsman calculated that Ms B would have had insufficient disposable income after essential expenditure and the monthly repayment to sustainably afford the agreement throughout its term. Therefore, 247 Money should not have lent to her.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| 247 Money Group Limited, all decisions | 42 | 36% |
| Irresponsible lending, all decisions | 29,406 | 38% |
| Motor finance (PCP / HP), all decisions | 19,456 | 38% |
Source
Read the original decision on the Financial Ombudsman Service website