Not upheld: irresponsible lending complaint against Jaja Finance Ltd

Decision detail

Summary

Miss E complained that Jaja Finance Ltd irresponsibly lent to her when approving a £1,100 credit card in January 2025. Miss E had declared income of £24,000, other credit cards totalling £3,339 in debt, and no adverse credit history. Jaja conducted CRA checks and affordability modelling which showed Miss E could comfortably meet repayments. The ombudsman found the checks were proportionate and the lending decision fair, as the credit limit represented only 4.6% of her income and there were no signs of financial difficulty at the time of approval. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Jaja's proportionate checks, including CRA information and affordability modelling, were sufficient given the circumstances. The credit limit of £1,100 was only 4.6% of Miss E's declared annual income, and the affordability assessment showed she would comfortably meet repayments. There was no adverse credit information, no signs of financial difficulty at the time of approval, and therefore no basis to require further checks such as bank statements. Future financial difficulties could not have been foreseeable to Jaja at the time of the lending decision.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website