Not upheld: irresponsible lending / unaffordable credit complaint against Oodle Financial Services Limited (trading as Oodle Car Finance)

Decision detail

Summary

Mr I complained that Oodle unfairly entered into a hire-purchase agreement for a used car in October 2022, claiming the monthly payments of £157.89-£207.89 were unaffordable. Oodle had obtained payslips and conducted credit searches showing no significant adverse information. The ombudsman found that while Oodle's checks could have been more thorough, they were proportionate given the low payment amount and clean credit history, and that Mr I's income appeared sufficient to cover the payments when committed expenses were deducted. The complaint was not upheld, as further checks would unlikely have prevented the lending decision.

The Ombudsman's reasoning

The ombudsman found that Oodle's checks, while not exhaustive, were proportionate given the relatively low monthly payment, the absence of adverse credit information, and Mr I's apparent profile as an average borrower. The ombudsman concluded that even if Oodle had carried out more detailed checks, the information available showed Mr I had sufficient funds to make the payments when committed expenses were deducted from income. The ombudsman also noted that Mr I's later bank statement analysis was less reliable than information he would have provided at the time of application, and that such retrospective analysis includes all expenditure rather than committed regular expenses.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website