Not upheld: irresponsible lending complaint against Onmo Limited

Decision detail

Summary

Miss M complained that Onmo irresponsibly provided her with a credit card with a £1,200 limit in August 2025, claiming it was unaffordable. Onmo had obtained information about Miss M's income (approximately £2,400 monthly), living costs (£100 for housing), and conducted a credit search showing no recent adverse information. The ombudsman found that Onmo's checks were proportionate for the early stage of a lending relationship and that the relatively low monthly payments required for a revolving credit facility of £1,200 were affordable based on the information obtained. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the FOS approach to irresponsible lending, noting that proportionate checks are required at the early stages of a lending relationship. For a revolving credit facility with a £1,200 limit, Onmo needed to understand whether the limit could be repaid within a reasonable period rather than all at once. The ombudsman found that Onmo's checks were proportionate given the relatively low monthly payments required, the declared income of £2,400 monthly, and the absence of adverse credit information. The ombudsman accepted that Onmo was entitled to rely on the information it had obtained.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website