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

Decision detail

Summary

Mr C complained that 118 118 Money irresponsibly lent him £1,000 in March 2025 without properly considering his existing indebtedness and ability to repay the 36 monthly instalments of £48.62. The ombudsman reviewed the lender's checks, which included Mr C's declared income (validated against credit reference agency data), expenditure information, and credit search results showing no significant adverse information. Although Mr C had some minor missed payments that were up to date and had been over a credit card limit, the ombudsman found these factors did not indicate the loan was unaffordable. The complaint was not upheld as the lender's proportionate checks were reasonable for a first loan and showed affordability based on available information.

The Ombudsman's reasoning

The ombudsman applied the FOS approach to irresponsible lending and found that 118 118 Money's proportionate checks were reasonable for a first loan in the relationship. The credit searches showed no significant adverse information, Mr C's unsecured debt was not excessive compared to his validated income, the monthly payment was low, and Mr C stated he lived with parents. Nothing in the information gathered indicated the loan was unaffordable or gave an obvious reason not to lend. The ombudsman rejected arguments that overdraft usage or being over a credit limit should have prevented lending.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website