Not upheld: Irresponsible lending complaint against 247 Money Group Limited

Decision detail

Summary

Miss M complained that 247 Money irresponsibly lent to her when providing a hire purchase agreement for a car in March 2021 with monthly payments of £290.08. The ombudsman found that while 247 Money's initial checks were not reasonable and proportionate given Miss M's credit report showing three defaults, arrears, and arrangement to pay, reasonable checks would have revealed monthly expenditure of approximately £1,646 before food costs. Based on Miss M's verified income of £2,754.51 per month, this would have left sufficient disposable income to afford the payments. The ombudsman rejected Miss M's arguments regarding gambling spending and her lower calculated disposable income, concluding the lending was not irresponsible and the complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that while 247 Money's checks were not reasonable and proportionate given the adverse credit history, reasonable and proportionate checks would likely have revealed monthly expenditure of approximately £1,646 before food costs. Based on verified income of £2,754.51, this would have left sufficient disposable income to afford the £290.08 monthly payment. The ombudsman was not persuaded that 247 Money should have been aware of gambling spending or that the adverse credit history alone justified refusing the credit for a car purchase.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website