Not upheld: irresponsible lending complaint against Loans 2 Go Limited trading as Loans 2 Go

Decision detail

Summary

Mr M complained that Loans 2 Go lent irresponsibly when providing a £2,000 loan in September 2023, his second loan from the firm in six months. His credit history included two satisfied county court judgments and a historic default. The ombudsman found that while Loans 2 Go's checks were not fully proportionate to the circumstances, proportionate checks would likely have shown Mr M had sufficient income and disposable funds to repay the loan sustainably. The ombudsman also noted that Mr M's gambling, visible in his bank statements, was not disclosed to the firm and the firm was not required to obtain statements to identify this. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman acknowledged that Loans 2 Go's pre-lending checks were not fully reasonable and proportionate given the credit limit and Mr M's financial history (two satisfied CCJs and a historic default). However, the ombudsman concluded that if proportionate checks had been conducted, they would likely have identified sufficient income and disposable funds to support the loan repayment. Bank statements showed Mr M's declared income was accurate and his outgoings, including the new loan repayment, would leave sufficient funds. The ombudsman noted that while gambling transactions were visible in statements, Loans 2 Go was not required to request bank statements and Mr M had not disclosed his gambling, so the firm could not have been expected to identify this as a concern.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website