Not upheld: irresponsible lending complaint against Everyday Lending Limited trading as Evlo

Decision detail

Summary

Mr S complained that Evlo irresponsibly provided him with a £6,000 loan in March 2023. Mr S had historic county court judgements and defaulted accounts, though he explained these were due to an ex-partner and he was making repayments. He had also recently taken out multiple credit products for wedding costs. Evlo conducted a comprehensive income and expenditure assessment, verifying Mr S's income at £3,416 and assessing living costs at £1,859 with a 5% buffer. The loan actually reduced Mr S's overall monthly outgoings by approximately £144 through debt consolidation. The ombudsman found Evlo's checks were reasonable and proportionate, and that the loan was sustainably affordable, so the complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found Evlo's pre-lending checks were reasonable and proportionate. Although Mr S had historic adverse credit data, a full income and expenditure assessment was appropriately conducted. Mr S's income of £3,416 with assessed living costs of £1,859 (including 5% buffer) and mortgage costs, combined with credit commitments of £1,286 before consolidation, resulted in the new loan actually reducing his overall monthly outgoings by approximately £144 net (£380 reduction minus £236 new repayment). The ombudsman concluded there was nothing to suggest Mr S was likely to be unable to sustainably repay the loan, and that Mr S made an informed decision about the increased loan amount for debt consolidation purposes.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website