Not upheld: irresponsible lending - inadequate affordability checks complaint against Oodle Financial Services Limited

Decision detail

Summary

Miss G complained that Oodle approved a £17,000 car finance agreement in January 2022 that she could not afford, arguing that Oodle failed to verify her maternity leave status and ignored her poor credit history including a Debt Relief Order. The ombudsman found that Oodle's initial checks were inadequate given the poor credit file and unverified income. However, upon reviewing Miss G's bank statements, the ombudsman calculated that she had approximately £1,635 in average monthly net income, leaving sufficient disposable income after household expenses to cover the £460 monthly payment. The ombudsman also noted that Miss G had chosen the most expensive of three available cars, demonstrating choice and awareness. Accordingly, the complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that while Oodle's initial checks were insufficient given Miss G's poor credit history and unverified income, a proportionate assessment required consideration of what Oodle would have discovered with more thorough checks. Upon reviewing Miss G's bank statements, the ombudsman calculated that Miss G had approximately £1,635 in average monthly net income, leaving around £965 after her £670 household contribution, which was sufficient to cover the £460 monthly car payment plus other expenses. The ombudsman also noted that Miss G had deliberately chosen the most expensive of three cars available, demonstrating choice and awareness of her financial position.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website