Not upheld: irresponsible lending - affordability assessment complaint against Santander UK Plc

Decision detail

Summary

Mr B complained that Santander lent irresponsibly when providing a £2,000 loan in November 2021, arguing that insufficient checks would have revealed unaffordable repayments. Santander's affordability assessment showed Mr B had net monthly income of £2,800 with £882 remaining disposable income after all expenses including the £56 monthly loan repayment, and CRA checks were largely positive. Although Mr B later provided bank statements showing gambling transactions and short-term credit reliance, the ombudsman found that Santander's checks were reasonable and proportionate, and the firm was not required to review bank statements given the positive CRA results. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman concluded that Santander's affordability assessment was reasonable and proportionate given the circumstances. The CRA checks showed largely positive results with a healthy disposable income remaining (£882) and no indicators of financial difficulty. While Mr B's bank statements later revealed gambling transactions and short-term credit reliance, the ombudsman found that Santander was not required to review bank statements given what the CRA checks showed, and could not be held accountable for lending not appearing in the CRA checks.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website