Not upheld: irresponsible lending / unaffordable lending complaint against 247 Money Group Limited

Decision detail

Summary

Mr M complained that 247 Money unfairly entered into a hire-purchase agreement for a car in September 2022 with monthly payments of £244.87 that he claimed were unaffordable. 247 Money had relied on statistical data for living cost estimates rather than obtaining Mr M's actual expenses, despite his credit history showing a defaulted account. The ombudsman found that while 247 Money should have obtained more information about Mr M's actual living expenses given his adverse credit profile, the bank statements Mr M later provided showed his actual expenses were similar to the estimates used, and Mr M had confirmed the disposable income calculation was broadly correct. The ombudsman concluded that even with proper checks, 247 Money would likely have reached the same lending decision, so the complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that 247 Money should not have relied on statistical living cost data given Mr M's adverse credit history indicated he fell outside the average borrower profile. However, the ombudsman concluded that even if 247 Money had obtained Mr M's actual living expenses, the evidence shows these were remarkably similar to the estimates used, and Mr M himself confirmed the disposable income calculation was broadly correct. Therefore, 247 Money would likely have reached the same lending decision even with more thorough checks.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website