Not upheld: irresponsible lending complaint against Plata Finance Limited

Decision detail

Summary

Mr S complained that Plata Finance Limited irresponsibly provided him with a £25,000 loan in August 2025 for debt consolidation over 60 months. The ombudsman reviewed Plata's lending decision and found that the firm had conducted checks showing good affordability, that Mr S had been meeting his existing borrowing obligations, and that his credit history showed no recent defaults or missed payments. The ombudsman concluded the loan was provided fairly and did not uphold the complaint, finding no evidence that Plata should have avoided lending or that Mr S was unable to sustainably repay the debt.

The Ombudsman's reasoning

The ombudsman found that although Plata's checks could have been more searching, better checks would not have led to a different lending decision. The information available to Plata showed Mr S had good affordability, no recent payment defaults, and was using the loan for debt consolidation rather than adding to his debt burden. There was insufficient evidence that Plata should have avoided providing the loan or that Mr S was likely to be unable to sustainably repay it.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website