Not upheld: irresponsible lending - inadequate affordability checks complaint against Lendable Ltd

Decision detail

Summary

Mr W complained that Lendable lent irresponsibly by failing to conduct proper affordability checks before approving a £1,000 loan in September 2025. Mr W highlighted 11 defaults on his credit file within 3 years and his active debt management plan as reasons Lendable should have investigated further, including requesting bank statements. The ombudsman found that Lendable's use of a comprehensive credit report, verification of income via CATO, and assessment of disposable income were reasonable and proportionate for the loan amount. The ombudsman noted that as a sub-prime lender, Lendable reasonably treated the historic defaults (none within 12 months) as not reflective of Mr W's current position, particularly given his subsequent successful account management. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Lendable's checks were reasonable and proportionate given the low loan amount of £1,000. The comprehensive credit report provided significantly richer information than summary bureau data, allowing Lendable to derive existing credit commitments with reasonable certainty. As a sub-prime lender, Lendable reasonably treated the 11 defaults as historic (none within 12 months) rather than a bar to lending. The debt management plan, while noted, did not prevent lending given Mr W's subsequent successful account management. The ombudsman rejected the need for bank statements as disproportionate for a £1,000 loan and confirmed sufficient disposable income existed for sustainable repayment.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website