Not upheld: irresponsible lending complaint against Omni Capital Retail Finance Limited

Decision detail

Summary

Mr C complained that two fixed sum loans from Omni Capital Retail Finance (£1,145.69 in July 2023 and £899.10 in May 2024) were unaffordable and lent irresponsibly. Mr C argued that the firm should have given greater weight to his unstable self-employment income, high number of active credit accounts, and increasing reliance on buy now, pay later credit. The ombudsman found that the firm's affordability checks were reasonable and proportionate, that it was fair to rely on Mr C's declared and validated income, and that the lending decisions were fair at the time of approval. Although Mr C entered a debt management plan in October 2024, the ombudsman concluded this post-lending deterioration did not demonstrate irresponsible lending and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman concluded that Omni Capital Retail Finance's affordability checks were reasonable and proportionate for both loans. The firm was entitled to rely on Mr C's declared and validated income without obtaining more detailed financial information. Although Mr C's financial position deteriorated after May 2024 and he entered a debt management plan in October 2024, this did not demonstrate that the lending was irresponsible at the time of approval. The ombudsman was not persuaded that the firm acted unfairly or unreasonably, including under section 140A.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website