Not upheld: payment arrangement review and request for evidence; enforcement action complaint against UK Credit Limited

Decision detail

Summary

Mr T complained that UK Credit Limited unreasonably requested bank statements as part of a payment arrangement review and acted unfairly when he refused to provide them. Mr T had been paying £5 per month under a short-term arrangement for over 4 years. When UK Credit reviewed the arrangement in September 2025, its affordability assessment indicated he could afford £43.40 per month, but Mr T offered only £15. UK Credit requested bank statements to understand the discrepancy, which Mr T refused, leading UK Credit to pass the account to enforcement. The ombudsman found the request for bank statements was reasonable and proportionate given the circumstances, and that UK Credit's subsequent enforcement action was justified, though the tone of communications could have been more sensitive.

The Ombudsman's reasoning

The ombudsman found that short-term payment arrangements should not continue indefinitely and that it is reasonable for lenders to review such arrangements periodically to ensure affordability and timely debt repayment. Given the substantial gap between the assessed affordable payment (£43.40) and Mr T's offer (£15), the request for bank statements was proportionate and in line with FCA expectations. While the tone of some communications could have been more sensitive, the ombudsman concluded that UK Credit was clear and consistent about why the bank statements were needed. The decision to pursue enforcement after Mr T consistently refused to provide the requested information was not unreasonable.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website