Not upheld: irresponsible lending complaint against Mitsubishi HC Capital UK PLC (trading as Novuna Personal Finance)

Decision detail

Summary

Mr B complained that Novuna lent to him irresponsibly when providing two personal loans totaling approximately £8,500 in 2018 for furniture purchase, arguing that inadequate checks were conducted and information was unclear. The complaint was made in 2025, years after the loans were taken out. While Mr B ultimately accepted the loans appeared affordable at the time, he raised broader concerns about the long-term high-cost nature of the debt and the fairness of his relationship with Novuna. The ombudsman found that Novuna's proportionate checks, including CRA data and affordability assessment, did not reveal concerns, the loans appeared affordable, information was clearly presented, and there was no evidence of unfair treatment or breach of consumer credit law.

The Ombudsman's reasoning

The ombudsman found that Novuna's proportionate checks at the time of lending did not reveal any cause for concern regarding affordability or sustainability. The loans appeared affordable based on the information available, and the terms were clearly disclosed. Mr B's broader concerns about long-term high-cost debt and the fairness of the relationship over time did not constitute irresponsible lending or unfair treatment under s.140A of the Consumer Credit Act 1974, particularly given that Mr B maintained his payments without apparent difficulty.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website