Not upheld: irresponsible lending - insufficient affordability checks complaint against Evergreen Finance London Limited trading as MoneyBoat.co.uk

Decision detail

Summary

Mr W complained that MoneyBoat provided two loans without sufficient affordability checks, citing his existing debt obligations including a £450 monthly PCP car payment, credit cards, unsecured borrowing, and overdraft usage. MoneyBoat assessed Mr W's income of £3,280-£3,500 monthly and modelled his expenditure at £2,687 and £2,193 respectively, finding sufficient disposable income. The Ombudsman found the checks proportionate given the break in the lending relationship between the two loans, the independent verification of income, the use of multiple sources to assess expenditure, and the absence of defaults or missed payments on Mr W's credit file. The complaint was not upheld.

The Ombudsman's reasoning

The Ombudsman found that MoneyBoat's checks were proportionate given the circumstances of two separate lending chains with a break between them. The firm verified income through independent means, assessed expenditure using multiple sources including statistical data and credit checks, and found no indicators of financial difficulty. While Mr W had significant existing debt and overdraft usage, the absence of defaults or missed payments, combined with calculated disposable income, meant the lending was sustainable. The break in the lending relationship meant each loan could be treated as the start of a new chain, justifying less thorough checks than might be required for repeat lending.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website