Not upheld: irresponsible lending complaint against Plata Finance Limited

Decision detail

Summary

Mr B complained that Plata Finance Limited irresponsibly provided him with a £5,000 loan in October 2025. Plata had verified Mr B's monthly net income at £3,250, confirmed he was renting at £400 monthly with no dependents, and obtained a credit report showing total debt of £26,564 with existing commitments of £1,271 monthly and no defaults or missed payments. The ombudsman found Plata's checks were reasonable and proportionate, that sufficient disposable income remained after housing and credit costs to cover the £264.31 monthly loan repayment, and that the debt consolidation purpose would reduce overall costs. The complaint was not upheld, and no remedy was ordered.

The Ombudsman's reasoning

The ombudsman found that Plata's pre-lending checks were reasonable and proportionate for a £5,000 loan. The verified income of £3,250 monthly, combined with existing credit commitments of £1,271 and proposed loan repayments of £264.31, left sufficient disposable income of approximately £1,579 for other living costs. The clean credit history with no defaults or missed payments indicated Mr B was managing existing commitments, and the debt consolidation purpose would reduce overall costs. There was nothing in the information gathered to suggest Mr B would be unable to sustainably repay the loan.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website