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

Decision detail

Summary

Mr K complained that TOSMSL lent him £1,000 irresponsibly in February 2020 with monthly repayments of £158.33. TOSMSL conducted checks including payslips, bank statements and credit file review, calculating Mr K's expenditure at approximately £1,900 against his declared income of £3,500. Although Mr K had existing debt of approximately £16,000 and a historical missed payment, he was current on all accounts at application. The ombudsman found TOSMSL's checks were reasonable and proportionate, and that nothing suggested Mr K would be unable to sustainably repay, so the complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that TOSMSL's pre-lending checks were reasonable and proportionate for a £1,000 loan. Although Mr K had existing debt and a historical missed payment, TOSMSL's website explicitly states it accepts applications from people with poor credit histories. The key finding was that Mr K was up to date with all payments at application, and based on the information provided and gathered, there was nothing to suggest he would be unable to sustainably repay the loan. The ombudsman also considered Section 140A of the Consumer Credit Act 1974 but found no evidence of irresponsible lending or unfair treatment.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website