Not upheld: irresponsible lending complaint against Jaja Finance Ltd trading as Asda Money Credit Card

Decision detail

Summary

Miss M complained that Asda Money lent to her irresponsibly when issuing a credit card with a £2,200 limit in October 2024, claiming that adequate checks would have revealed an active debt management plan and financial distress. The ombudsman found that Asda Money conducted reasonable and proportionate checks including application data, credit bureau and third party reports, and that no debt management plan was visible at the time of lending. With declared income of £90,000 and no signs of financial distress, the ombudsman concluded the credit was provided fairly and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that Asda Money's pre-lending checks were reasonable and proportionate for the modest credit limit offered. The credit limit of £2,200 was modest compared to the declared income of £90,000. The previous default was reasonably treated as historic. There was no visible evidence of a debt management plan or other financial distress at the time of lending, and nothing suggested Miss M would be unable to sustainably repay the credit.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website