Not upheld: irresponsible lending complaint against Plata Finance Limited

Decision detail

Summary

Mr W complained that Plata Finance Limited irresponsibly lent him £3,000 in August 2023, arguing his actual income was lower than declared and his outgoings were higher than assessed. He pointed to his regular overdraft use and subsequent financial difficulty as evidence the lending was unsustainable. The ombudsman found that Plata's checks were proportionate, including verification of his declared income through CATO and a comprehensive affordability assessment. The ombudsman rejected the argument that further checks were necessary and found that Mr W's later financial difficulties in August 2025 could not have been foreseen at the time of approval. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Plata's checks were proportionate given the size of the loan (£3,000) and monthly repayments. Plata verified Mr W's declared income through CATO rather than relying solely on his word. The affordability assessment showed healthy disposable income, Mr W was within all credit limits, and there was no recent adverse credit. The ombudsman rejected the argument that further checks (such as bank statements or payslips) would have been proportionate after income verification. The subsequent financial difficulty and change in work hours in August 2025 could not have been foreseen at the time of approval in August 2023.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website