Not upheld: Irresponsible lending complaint against Salary Finance Limited

Decision detail

Summary

Mrs L complained that Salary Finance Limited lent to her irresponsibly when she borrowed £12,000 over 36 months in July 2025, arguing the firm failed to conduct adequate checks. Mrs L highlighted that her overdraft usage, use of other credit, and gambling activity were visible on her bank statements but not reviewed by the firm. The ombudsman found that Salary Finance conducted proportionate checks including income verification, CRA data review, and affordability assessment, all of which showed no concerning information. The ombudsman concluded that lenders have no fixed requirement to review bank statements and that the firm was entitled to rely on its proportionate checks, which demonstrated the loan was affordable. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Salary Finance was entitled to rely on proportionate checks appropriate to the circumstances. Since the checks carried out revealed no concerning information and demonstrated affordability, the firm had no obligation to conduct more extensive checks such as reviewing bank statements. There is no fixed requirement for lenders to review specific documents, and the positive affordability assessment combined with the debt consolidation purpose provided reasonable grounds for lending. The ombudsman concluded that Salary Finance could not have known or ought to have known the credit would become unaffordable.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website