Not upheld: irresponsible lending complaint against The Royal Bank of Scotland Public Limited Company

Decision detail

Summary

Mr and Mrs B complained that RBS irresponsibly provided them with a £19,950 personal loan in September 2021 requiring 60 monthly payments of around £390. RBS's lending checks relied on the borrowers' own estimated monthly costs rather than credit file data, and RBS could not provide details of its credit check. The ombudsman found that while RBS's checks were not ideal, they were reasonable and proportionate given the credit limit, and available evidence suggested the loan repayments were likely affordable. Mr and Mrs B did not provide additional financial information requested by the ombudsman. The complaint was not upheld as there was insufficient evidence to demonstrate the loan was unaffordable or that RBS lent irresponsibly.

The Ombudsman's reasoning

The ombudsman found that although RBS's checks were not ideal (relying on borrowers' own estimates rather than credit file data), they were reasonable and proportionate given the credit limit offered. The available evidence suggested loan repayments were likely affordable. Mr and Mrs B failed to provide additional requested information that might have demonstrated unaffordability. Without sufficient evidence to show they were likely unable to sustainably repay the loan, the complaint could not be upheld.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website