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

Decision detail

Summary

Mr B complained that Novuna Personal Finance irresponsibly provided him with a £10,000 loan in April 2024 and a £5,000 loan in March 2025. The ombudsman found that while further checks should have been undertaken due to discrepancies between declared and verified income and the size and timing of the loans, proportionate checks would not have shown the loans to be unaffordable. Using both household and individual income assessments, Mr B demonstrated sufficient disposable income to cover the loan repayments (£263.37 and £156.97 respectively), and credit reports showed no signs of over-indebtedness. The complaint was not upheld, and no remedy was ordered.

The Ombudsman's reasoning

Although the ombudsman agreed that further checks should have been undertaken due to the size and timing of the loans and discrepancies in income figures, the key question was whether proportionate checks would have shown it was unfair to provide the credit. The ombudsman assessed both loans using household income and expenses, and alternatively using Mr B's individual income with half of joint expenses. In both scenarios, Mr B demonstrated sufficient disposable income to sustainably repay the loan repayments. The credit reports showed no signs of over-indebtedness, and there was nothing in Mr B's circumstances to suggest he would be unable to sustainably repay the loans.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website