Not upheld: irresponsible lending / unaffordable lending complaint against Everyday Lending Limited trading as Evlo

Decision detail

Summary

Miss J complained that Evlo irresponsibly lent her £12,700 for debt consolidation in July 2024, arguing the loan was unaffordable and that Evlo failed to conduct a reasonable affordability assessment despite her existing financial pressure and overdraft dependency. Evlo maintained they carried out appropriate checks using open banking, employment verification, and credit reference agency data, which showed the loan was affordable. The ombudsman upheld Evlo's position, finding their assessment was reasonable and proportionate, noting that Miss J's credit file showed no adverse history and that consolidation would have reduced her overall monthly repayments by approximately £535, putting her in a better financial position.

The Ombudsman's reasoning

The ombudsman found that Evlo's affordability assessment was reasonable and proportionate to the circumstances. The checks included verification of income through open banking and employment contract, credit reference agency information showing no adverse history, and multiple conversations with Miss J about her circumstances and intentions. The ombudsman noted that if Miss J used the loan as intended for consolidation, her overall monthly repayments would have reduced by approximately £535, putting her in a better financial position. The ombudsman concluded that nothing in the information gathered suggested Miss J was struggling to manage her finances at the time of lending, and the decision to lend was reasonable given her circumstances, income, and fixed costs.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website