Not upheld: irresponsible lending and unfair relationship under Section 140A Consumer Credit Act 1974 complaint against Home Retail Group Card Services Limited trading as Argos Financial Services

Decision detail

Summary

Mr E complained that Argos lent to him irresponsibly and failed to support him while in persistent debt, requesting a refund of interest and charges. Argos argued the complaint was time-barred but the ombudsman considered it under Section 140A of the Consumer Credit Act 1974 regarding unfair relationships. Although Argos could not produce all original documentation from 2016-2017, the available evidence showed Mr E passed affordability assessments with modest credit limits relative to his income of approximately £1,063-£1,250 per month. The ombudsman found the account did not meet the regulatory definition of persistent debt and there was no evidence Mr E sought help from Argos. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied Section 140A of the Consumer Credit Act 1974 to assess whether the lending relationship was unfair. Although Argos could not produce all original documentation, the available evidence showed Mr E passed affordability assessments with a modest credit limit relative to his income. The ombudsman found that if Argos had verified income and expenditure, it would have reached the same lending decision. The account did not meet the regulatory definition of persistent debt, and Mr E provided no evidence of contacting Argos for help. Therefore, Argos did not lend irresponsibly or treat Mr E unfairly.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website