Not upheld: Irresponsible lending complaint against Quidie Limited trading as Fernovo

Decision detail

Summary

Mr H complained that Fernovo irresponsibly lent to him through six instalment loans between April 2022 and November 2024. The loans ranged from £250-£400 with repayment periods of 3-5 months. While credit checks revealed some adverse data including defaults and arrears, the ombudsman found these were largely historic and satisfied. Fernovo conducted comprehensive affordability checks showing Mr H had sufficient disposable income (£150-£2,000) after accounting for loan payments. The loans did not overlap, there were significant gaps between lending chains, and Mr H repaid on time. The ombudsman concluded Fernovo's checks were fair and proportionate and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that while adverse credit data was present, most defaults were historic and satisfied, and a default within 12 months is not automatic grounds for declining credit. Fernovo's affordability checks were comprehensive and showed sufficient disposable income remained after loan payments. The pattern of lending (six loans with gaps between chains, no overlaps, on-time repayment) did not suggest unsustainable borrowing. The ombudsman concluded that Fernovo's checks were fair and proportionate, and any harm caused was not foreseeable based on information reasonably available to the lender at the time.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website