Not upheld: undisclosed fees / lack of transparency complaint against Lendable Ltd

Decision detail

Summary

Mr S complained that Lendable Ltd added a £560 loan fee that was not mentioned when he applied for a loan via a third-party comparison website. Upon receiving a settlement quotation, he discovered the fee had been applied to his loan. Mr S argued the fee was not made clear during the application process and questioned its fairness and proportionality. The ombudsman reviewed the Pre-Contract Credit Information and Loan Agreement and found both documents clearly itemised the £560 fee and explained it would be added to the capital balance and subject to interest. Although the third-party comparison site did not include the fee, Lendable was not responsible for how third parties presented information. The ombudsman found all key loan features were clearly set out on Lendable's website and that Mr S's signature on the agreement confirmed his acceptance of the terms. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman reviewed the loan documentation and found that the £560 fee was clearly and separately itemised in both the Pre-Contract Credit Information (Section 3) and the Loan Agreement (Key Terms A2.3 and A3.10), with explicit explanation that it would be added to the capital balance and subject to interest. Although Mr S's application originated from a third-party comparison site that did not include the fee, Lendable was not responsible for third-party presentation of information. The ombudsman found that when Mr S was directed to Lendable's website, all key features including the fee were clearly set out. Regarding vulnerability, the ombudsman noted that Mr S had not made Lendable aware of any specific needs or adjustments required. The ombudsman also noted that the Financial Ombudsman Service cannot comment on whether a business's charges are proportionate, only whether they were properly disclosed.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website