Not upheld: irresponsible lending complaint against Loans 2 Go Limited

Decision detail

Summary

Miss M complained that Loans 2 Go Limited irresponsibly lent her £2,000 over 24 months in May 2025, arguing the repayments were unaffordable given her variable income and that she fell into financial difficulty shortly after. The ombudsman found that while L2G should have conducted further checks due to Miss M being in arrears on two accounts, a review of her bank statements would have shown the loan was sustainable and affordable. The ombudsman concluded that Miss M's subsequent income reduction due to fewer working hours was not foreseeable at the time of lending and therefore the complaint was not upheld.

The Ombudsman's reasoning

While L2G should have conducted further proportionate checks given the arrears information on Miss M's credit file, the ombudsman concluded that had they reviewed bank statements, they would still have approved the loan. After accounting for priority bills and actual disposable income, the monthly repayments appeared sustainable and affordable even in the month Miss M earned less (£1,052). The subsequent income reduction due to fewer working hours was not foreseeable at the time of lending and therefore could not have influenced the lending decision.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website