Not upheld: irresponsible lending complaint against Madison CF UK Limited trading as 118 118 Money

Decision detail

Summary

Mr D complained that Madison CF UK Limited trading as 118 118 Money irresponsibly provided him with a £1,250 loan in May 2024. The ombudsman reviewed the firm's pre-lending checks, which verified Mr D's part-time employment income of £1,249, confirmed he lived with parents, and showed no serious credit issues with total debts of £2,929 and 16% revolving credit utilisation. The ombudsman found that Mr D's income left approximately £380 monthly after estimated costs of £869, sufficient to cover the £89 loan repayment. Although Mr D's account statements showed gambling activity, the ombudsman determined the firm was not required to request bank statements and had no reason to be aware of this. The complaint was not upheld as the ombudsman found the lending was fair and reasonable.

The Ombudsman's reasoning

The ombudsman found that 118 118 Money's pre-lending checks were reasonable and proportionate. The credit report did not indicate financial difficulty or overindebtedness. Mr D's income of £1,249 against estimated monthly costs of £869 left sufficient buffer of approximately £380 for the £89 loan repayment and unforeseen costs. While Mr D's account statements showed gambling activity, the ombudsman determined that 118 118 Money was not required to request bank statements and had no reason to be aware of this before lending. Based on the information gathered, there was nothing to suggest Mr D would be unable to sustainably repay the loan.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website