Not upheld: Irresponsible lending complaint against Evergreen Finance London Limited

Decision detail

Summary

Miss R complained that MoneyBoat lent to her irresponsibly on four loans taken between March 2021 and April 2023, arguing that proper checks would have revealed she could not afford them. She accepted the non-uphold decision for Loan 1 but disputed the outcome for Loans 2-4. The ombudsman found that MoneyBoat's pre-lending checks were reasonable and proportionate, income verification was adequate, and credit checks revealed no adverse indicators of financial difficulty. Although Miss R maintained an overdraft and took multiple loans, these factors alone did not suggest unsustainable borrowing. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that MoneyBoat's pre-lending checks were reasonable and proportionate for the credit offered. Income verification was adequate, and even with more detailed payslips, figures would have been broadly correct. Credit checks showed no adverse indicators of financial difficulty. Overdraft usage alone does not justify refusing credit, and the frequency of three loans was too low to alert MoneyBoat to repeat lending concerns. Based on all information gathered, there was nothing to suggest Miss R could not sustainably repay the loans.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website