Not upheld: irresponsible lending complaint against Loans 2 Go Limited

Decision detail

Summary

Miss C complained that Loans 2 Go Limited provided four loans irresponsibly between May 2019 and July 2022. The ombudsman found that while the initial checks for loan one were not entirely reasonable given Miss C's modest income and approximately £100 monthly disposable income, proportionate checks would likely have reached the same conclusion. For loans two, three, and four, the firm's checks were reasonable and proportionate. Bank statements showed no indication of financial difficulty, and Miss C's increased income offset her increased expenditure. The complaint was not upheld, and no remedy was ordered.

The Ombudsman's reasoning

The ombudsman found that although Loans 2 Go's initial checks for loan one were not entirely reasonable and proportionate given Miss C's modest income and limited disposable income, proportionate checks would likely have reached the same conclusion to lend. The firm verified information, used worst-case figures, and bank statements showed no indication of financial difficulty. For loans two, three, and four, the checks were reasonable and proportionate. Miss C's increased expenditure was offset by greater income increases, indicating no financial difficulties. The ombudsman also considered the relationship under section 140A of the Consumer Credit Act 1974 but found no unfairness.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website