Not upheld: irresponsible lending complaint against Loans 2 Go Limited

Decision detail

Summary

Mr M complained that Loans 2 Go Limited irresponsibly provided him with a £1,000 loan in August 2023. The ombudsman examined the firm's pre-lending checks, which included verification of Mr M's full-time employment and monthly income of £2,750 through payslips, a credit check with a main agency, and assessment of his expenses at £1,886. The ombudsman found the checks were reasonable and proportionate, that Mr M appeared able to afford the repayments, and that a historic county court judgement and minor arrears were not sufficient grounds to refuse the loan. The complaint was not upheld as the ombudsman found Loans 2 Go acted fairly and did nothing wrong in providing the credit.

The Ombudsman's reasoning

The ombudsman found that Loans 2 Go's pre-lending checks were reasonable and proportionate. The verified income of £2,750 against calculated expenses of £1,886 showed Mr M was not over-indebted and could afford the repayments. The historic nature of the county court judgement and the low outstanding balance on the arrears account were not sufficient reasons to refuse the loan. Mr M had full information about the loan terms and costs, and the right to withdraw within 14 days. There was nothing in the information gathered to suggest Mr M would be unable to sustainably repay the loan.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website