Not upheld: irresponsible lending - inadequate affordability checks complaint against Lendable Limited

Decision detail

Summary

Mr D complained that Lendable lent to him irresponsibly by failing to make adequate affordability checks when approving a £2,000 loan in July 2026. Mr D argued that Lendable should have identified his 99% credit card utilisation, multiple lines of credit, and reliance on borrowing for day-to-day living through bank statement analysis. Lendable disputed this, stating they had completed appropriate checks including credit file verification and income verification via CATO. The ombudsman found that Lendable's checks were reasonable and proportionate, the credit file showed positive indicators with no defaults or arrears, and affordability calculations demonstrated sufficient disposable income for sustainable repayments. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Lendable's checks were reasonable and proportionate to the lending. The comprehensive credit file showed positive indicators with no defaults or arrears, and while credit card utilisation was high at 99%, the £400 limit was modest compared to the £45,000 annual income. Lendable's affordability calculations, which included conservative assumptions such as £1,500 housing costs despite zero declared rent, showed sufficient disposable income for sustainable repayments. The ombudsman rejected the argument that current account records should have been reviewed, as this would not have been proportionate and was not visible to the lender. Subsequent loans could not be considered as they occurred after the lending decision.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website