Not upheld: Guarantor loan complaints complaint against Match the Cash Limited

Decision detail

Summary

Ms M complained that MTC failed to properly check whether she could sustain repayments as a guarantor for a £12,500 loan and that she had been coerced into the role. MTC had verified Ms M's income (£4,720.20 monthly) and non-discretionary outgoings (£3,774.32 monthly) through open banking, CRA checks, and Ms M's declarations, finding she would have £451.73 disposable income after loan payments. The ombudsman found MTC's checks were reasonable and proportionate, Ms M's consent was properly informed (confirmed twice she was not pressured), and no evidence suggested MTC should have been aware of coercion. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied CONC rules requiring reasonable and proportionate checks before approving a guarantor. MTC verified Ms M's income and expenditure through multiple sources (open banking, CRA, and Ms M's declarations), used conservative figures in affordability calculations, and found no signs of financial vulnerability. Ms M demonstrated understanding of her obligations, confirmed twice she was not being pressured, and signed the agreement independently. While Ms M later claimed coercion, the ombudsman found no evidence MTC should have been aware of this at the time of lending, as Ms M was engaged and open during calls and the loan was credited to her account rather than the borrower's.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website