Not upheld: irresponsible lending complaint against Loans 2 Go Limited trading as Loans 2 Go

Decision detail

Summary

Miss L complained that Loans 2 Go lent to her irresponsibly when she borrowed £400 in January 2024. The loan was repaid in full within 33 days. The ombudsman examined the firm's affordability checks and found they were reasonable and proportionate, using verified income of £1,640 and calculated expenditure of £1,360 to determine disposable income of £280 after the loan payment. With Miss L's existing debts all up to date and no evidence of repayment difficulties, the ombudsman concluded the firm did not lend irresponsibly and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that Loans 2 Go conducted reasonable and proportionate checks before lending. The firm used conservative figures in its assessment (verified lower income of £1,640 and calculated higher expenditure of £1,360), resulting in a calculated disposable income of £280 to cover the £82.22 monthly payment. The existing debts were all up to date, and there was nothing in the information gathered to suggest Miss L would be unable to sustainably repay. The fact that Miss L repaid the loan within 33 days with no evidence of financial difficulties further supported the decision.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website