Not upheld: irresponsible lending complaint against Lendable Ltd (trading as Zable)

Decision detail

Summary

Miss H complained that Zable irresponsibly provided her with a £500 credit card in June 2022 as it was unaffordable. Zable had conducted income checks (validated against credit reference agencies), reviewed rent payments, and performed credit searches, which showed Miss H was managing existing credit without recent difficulties. The ombudsman found that these proportionate checks were adequate for the early stage of a lending relationship and low credit limit, and that the information gathered indicated Miss H could afford the modest monthly repayments required. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Zable's checks were proportionate for the early stage of a lending relationship and a relatively low credit limit of £500. The information gathered showed Miss H could afford the modest monthly repayments required to clear the balance within a reasonable period. Bank statements were not required as proportionate checks, and Zable could only decide based on information available at the time of lending. No evidence indicated Miss H would be unable to make necessary payments.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website