Not upheld: irresponsible lending complaint against Evergreen Finance London Limited trading as MoneyBoat.co.uk

Decision detail

Summary

Mrs S complained that MoneyBoat lent to her irresponsibly when she had excessive debt and was in a debt spiral. She took three loans: £500 in November 2022 (repaid), £500 in August 2025 (repaid early), and £800 in September 2025 (outstanding). The ombudsman examined the proportionality of MoneyBoat's checks for each loan, reviewing credit searches, income verification, and expenditure calculations. Despite Mrs S having outstanding debt exceeding £27,000, receiving defaults in 2024, and underdeclaring housing costs, the ombudsman found she had sufficient disposable income to afford each loan based on her declared income and estimated outgoings. The ombudsman also noted that MoneyBoat could not have known of another lender's loan that had not yet registered with credit reference agencies. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the principle that lenders must carry out proportionate checks to ensure lending is sustainable. For Loan 1, the modest sum (£500) and early-stage lending relationship meant less thorough checks were reasonable. The credit search showed no adverse repayment markers, and despite Mrs S's underdeclared outgoings, she had sufficient disposable income (approximately £1,453 after estimated expenses of £1,547 from declared income of £3,000) to afford the loan and likely housing costs. For Loan 2, the three-year gap meant Mrs S was treated as a new customer, and the £500 loan was modest. Although Mrs S had received defaults 18 months prior and was over her revolving credit limit, these were being managed and not unreasonable concerns for a specialist lender. Her income of £3,800 less estimated outgoings of £1,547 and housing costs of £457 left sufficient disposable income. For Loan 3, the credit search showed improvement in Mrs S's position (budget account balance reduced, delinquent account better managed, defaults being managed). The ombudsman found the proportionate checks adequate and noted that MoneyBoat could not reasonably have known of the other lender's loan that had not yet registered with CRAs.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website