Not upheld: irresponsible lending complaint against V12 Retail Finance Limited

Decision detail

Summary

Mr M complained that V12 Retail Finance Limited lent to him irresponsibly when it granted him an interest-free loan of £5,829.10 in June 2025, repayable over 48 months. The ombudsman reviewed the complaint and upheld V12's decision, finding that the interest-free nature of the loan meant proportionate affordability checks were not required. The ombudsman reasoned that even if V12 had acted unfairly, Mr M would not have suffered financial loss as he received the loan funds without paying interest, and therefore no redress was warranted. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman determined that because the loan was interest-free, V12 did not need to conduct proportionate affordability checks. Even if V12 had acted unfairly in granting the loan, Mr M would not have suffered loss as he received the benefit of the loan funds with no interest charged, meaning no financial redress would be warranted. The ombudsman also considered the relationship under s.140A of the Consumer Credit Act 1974 and found no evidence of irresponsible lending or unfair treatment.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website