Not upheld: irresponsible lending and loan administration; jurisdictional limitation complaint against Link Financial Outsourcing Limited (trading as Asset Link Capital); originally Future Finance Corporation Limited

Decision detail

Summary

Miss P complained that a loan of £7,724 provided by Future Finance Corporation Limited in June 2018 was irresponsible and unaffordable, and that she did not receive adequate support. The loan was transferred to Asset Link Capital (No.9) Limited in November 2022 and administered by Link Financial Outsourcing Limited. The ombudsman found that while the original lending decision could not be reviewed because Future Finance no longer exists, Link Financial acted fairly as debt servicer by maintaining contact with Miss P and offering support options. The ombudsman noted that Miss P's right to complain about the lending decision was preserved because Future Finance was still trading when the debt was transferred. The complaint was not upheld, though Link Financial agreed to backdate the default to November 2019.

The Ombudsman's reasoning

The ombudsman distinguished between the original lending decision (which was the responsibility of Future Finance and therefore outside the scope of review as that firm no longer exists) and the subsequent debt servicing and support provided by Link Financial. The ombudsman found that Link Financial, as debt servicer from November 2022 onwards, acted fairly by keeping Miss P aware of her outstanding debt and available support options. The ombudsman also noted that Miss P's right to complain about the lending decision was not affected because Future Finance was still trading when the debt was transferred to ALC9 in November 2022, even though Future Finance was subsequently wound up in early 2023.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website