Not upheld: irresponsible lending - inadequate affordability checks complaint against Lendable Ltd trading as Autolend

Decision detail

Summary

Mr P complained that Lendable lent to him irresponsibly in January 2023 by failing to conduct adequate affordability checks, particularly given his existing credit commitments. Lendable verified Mr P's income at just over £2,000 monthly, assessed his existing credit obligations and essential expenditure, and calculated disposable income of £528 after the loan repayment. The ombudsman found the checks were reasonable and proportionate, and that even more extensive checks would not have revealed the loan to be unaffordable. The complaint was not upheld as Mr P successfully repaid the loan with no signs of financial distress.

The Ombudsman's reasoning

The ombudsman concluded that Lendable's checks were reasonable and proportionate to the credit being approved. The firm verified Mr P's income, obtained information about his existing credit commitments and essential expenditure, and calculated a reasonable disposable income of £528 monthly. Even if Lendable had conducted further checks such as reviewing bank statements, there was no evidence the loan would have been found unaffordable. Mr P successfully maintained the agreement with no signs of financial distress.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website