Upheld: irresponsible lending complaint against Everyday Lending Limited trading as Evlo
Financial Ombudsman decision DRN-6287745 of 2026-05-12T00:00:00+00:00. irresponsible lending complaint against Everyday Lending Limited trading as Evlo. Outcome: Upheld.
Decision detail
| Reference | DRN-6287745 |
|---|---|
| Decision date | 2026-05-12T00:00:00+00:00 |
| Firm | Everyday Lending Limited trading as Evlo |
| Product | loan |
| Claim type | irresponsible lending |
| Outcome | Upheld |
| Remedy | Evlo must refund all overpayments (total repayments minus amount borrowed) with interest at Bank of England base rate plus 1% simple interest per year from the date overpayments were made. If a capital balance remains, Evlo must arrange an affordable payment plan. All adverse information regarding the account must be removed from Mr C's credit file upon settlement or clearance. |
Summary
Mr C complained that Evlo irresponsibly provided him with a £2,800 loan in June 2022 at 127.1% APR. Evlo's affordability assessment showed Mr C had a monthly deficit of £120 and credit checks revealed recent missed payments on a credit card exceeding its limit. Although Evlo's checks were proportionate, the ombudsman found the firm should have realised Mr C could not sustainably repay the loan, even accounting for debt consolidation benefits. The complaint was upheld and Evlo was ordered to refund overpayments with interest and remove adverse credit file information.
The Ombudsman's reasoning
Although Evlo's pre-lending checks were reasonable and proportionate, the information gathered clearly demonstrated Mr C could not sustainably repay the loan. The monthly deficit of £120 combined with evidence of existing payment difficulties on the credit card was strong evidence of inability to repay. Even accounting for debt consolidation benefits, the resulting £90 monthly disposable income was insufficient to cover unexpected expenditure, and the consolidation did not address the credit card commitment Mr C was already struggling with.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Everyday Lending Limited trading as Evlo, all decisions | 7 | 43% |
Source
Read the original decision on the Financial Ombudsman Service website