Not upheld: irresponsible lending - adequacy of affordability checks complaint against Oakbrook Finance Limited trading as Finio Loans

Decision detail

Summary

Mr S complained that Finio Loans lent irresponsibly when approving a £1,000 personal loan in July 2025, arguing that inadequate checks were carried out and that his declared income of £62,395 was inflated by approximately £15,000. Finio Loans verified his income using CATO and assessed affordability using ONS data and credit reference agency information, finding disposable income of £941 after loan repayments. The ombudsman found the checks were reasonable and proportionate, the verification methods were approved, and the lending decision was fair based on the information obtained. The ombudsman rejected arguments that further verification was required or that Mr S's neurodivergence (disclosed only when raising the complaint) should have been identified earlier. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the relevant rules requiring proportionate checks appropriate to the loan type, amount, duration and cost, and the borrower's circumstances. The checks must assess affordability and sustainable repayment. Finio Loans' use of CATO to verify the declared income of £62,395 was reasonable and proportionate. The use of ONS data for expenditure estimation is an approved method. The resulting disposable income of £941 after loan repayments was sufficient to demonstrate affordability. While Mr S had £41,916 in existing debt and frequent overdraft use, this was not so high relative to his declared income as to raise concerns without additional indicators. The ombudsman found no evidence that should have prompted further verification steps or that should have alerted Finio Loans to Mr S's neurodivergence prior to his complaint.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website