Not upheld: irresponsible lending complaint against Link Financial Outsourcing Limited, trading as Antelope Loans

Decision detail

Summary

Miss J complained that a £25,000 loan provided in May 2023 was lent irresponsibly. The loan was later transferred to Antelope Loans. Miss J argued she was financially vulnerable due to her debt-to-income ratio and dependency on finance. The ombudsman found that while the lender's initial checks were not fully proportionate, proportionate checks would have shown the loan was sustainable based on Miss J's actual monthly income of £1,956.35 against essential costs of £1,859 and a loan repayment of £527.73. The ombudsman noted the loan was for debt consolidation, which would reduce Miss J's existing credit commitments by over £720 monthly, and that her credit file showed good financial management. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that although the lender's checks were not fully proportionate, proportionate checks would likely have shown the loan was fair to provide. Miss J's income of £1,956.35 monthly against essential costs of £1,859 and a loan repayment of £527.73 demonstrated she could sustainably repay. The debt consolidation purpose meant existing credit commitments would reduce by over £720 monthly. Miss J's credit file showed good management with no high-cost short-term borrowing, and her credit scores indicated low lending risk. The ombudsman was not persuaded Miss J was likely to be unable to sustainably repay the loan based on the information available to the lender.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website