Not upheld: irresponsible lending - alleged failure to carry out adequate affordability checks complaint against Jaja Finance Ltd trading as Asda Money Credit Card

Decision detail

Summary

Mr M complained that Asda Money lent irresponsibly when approving a £1,600 credit card in April 2025, arguing that affordability checks were insufficient and did not account for his reliance on payday loans and other credit. Asda Money verified Mr M's declared income of £39,180 through CRA data, calculated existing monthly credit commitments at £1,014, and found disposable income of approximately £1,001 after accounting for living expenses and the new credit repayments. The ombudsman found the checks were proportionate and the information was fairly considered, with no evidence of financial difficulty at the time of lending and Mr M's credit being well-managed. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Asda Money's checks were proportionate to the level of borrowing and that the information obtained was considered fairly. The declared income was verified, existing credit commitments were manageable relative to disposable income, and there was no evidence of financial difficulty at the time of lending. The substantial monthly disposable income of approximately £1,001 and Mr M's demonstrated ability to manage existing credit indicated the lending would be affordable and sustainable.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website