Not upheld: irresponsible lending / insufficient affordability checks complaint against Shop Direct Finance Company Limited trading as Very

Decision detail

Summary

Mr M complained that Very lent to him irresponsibly by making insufficient affordability checks before issuing his catalogue account and increasing his credit limit six times between November 2020 and December 2022, from £600 to £2,300. Very conducted credit checks at application and each limit increase that showed no adverse information, defaults, or over-limit reports, and Mr M made consistent overpayments throughout. The ombudsman found the checks were reasonable and proportionate, there were no signs of financial stress, and Mr M failed to provide his own credit file and statements to support his complaint. The complaint was not upheld and no remedy was ordered.

The Ombudsman's reasoning

The ombudsman found that Very's affordability checks were reasonable and proportionate for the credit limits offered. The credit checks at application and each limit increase revealed no adverse information, defaults, or over-limit reports. Mr M's consistent overpayments and good account management suggested he was handling his finances well with no signs of financial stress. The ombudsman also noted that Mr M failed to provide his own credit file and statements to support his complaint.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website