Not upheld: Irresponsible lending complaint against Hastings Financial Services Limited

Decision detail

Summary

Mr B complained that Hastings irresponsibly provided him with a £15,000 personal loan in July 2024 with 60 monthly repayments of £318.23, claiming he could not afford to repay it. Hastings had verified Mr B's income at £48,764 annually, identified existing credit obligations of £630 monthly, a mortgage payment of £1,040 monthly, and estimated other living costs at £613 monthly, concluding he had sufficient remaining funds. Mr B subsequently provided bank statements and detailed spending breakdowns arguing his income was lower and expenses higher than Hastings recorded. The ombudsman found Hastings' checks were reasonable and proportionate, rejected the argument for more detailed investigation as disproportionate, and concluded there was nothing to suggest Mr B would be unable to sustainably repay the loan, therefore not upholding the complaint.

The Ombudsman's reasoning

The ombudsman found that Hastings' checks were reasonable and proportionate for the amount of credit offered. The firm verified Mr B's income using an acceptable method and obtained information about major expenditures before estimating remaining costs. The ombudsman rejected Mr B's argument that more detailed investigation was required, noting that it would be disproportionate to examine all discretionary spending items in the detail Mr B later provided, as such adjustable expenditures may not remain constant. Based on the information gathered, there was nothing to suggest Mr B would be unable to sustainably repay the loan.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website