Not upheld: irresponsible lending complaint against Everyday Lending Limited

Decision detail

Summary

Mr B complained that ELL lent to him irresponsibly when providing a £3,000 personal loan in April 2025. Mr B alleged he was upsold from his original request of £1,200 and did not have sufficient time to consider the additional borrowing costs. The ombudsman found that ELL conducted extensive and proportionate affordability checks including review of two months' bank statements, credit file checks, and detailed interviews. The checks showed Mr B had good credit history, stable income, and sufficient disposable income to comfortably afford the monthly repayments. The ombudsman concluded ELL acted reasonably and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that ELL's affordability checks were proportionate to the circumstances, including reviewing bank statements, credit file, and conducting a detailed interview. The results of these checks indicated Mr B had sufficient disposable income to comfortably afford the repayments. ELL was not required to provide advice on suitability but only needed to ensure sustainable affordability and provide necessary information, which it did. The increase in loan amount from £1,200 to £3,000 was not shown to result from pressure, and Mr B signed documentation confirming he understood the terms.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website