Not upheld: irresponsible lending complaint against ZILCH TECHNOLOGY LIMITED

Decision detail

Summary

Miss T complained that Zilch Technology Limited lent to her irresponsibly when it provided a £1,500 credit account in May 2024. She raised the complaint approximately one year later in June 2025. The ombudsman found that while Zilch did not adequately document its proportionate checks, an examination of Miss T's bank statements and credit file at the time of lending showed she had sufficient disposable income and no significant adverse information that would have warranted refusing the credit. The complaint was not upheld as the ombudsman could not conclude that Zilch knew or ought to have known the credit was unaffordable.

The Ombudsman's reasoning

The ombudsman found that while Zilch did not provide sufficient evidence of carrying out proportionate checks, an examination of what such checks would have revealed showed that the credit would likely have been deemed affordable. Miss T's bank statements indicated sufficient disposable income, and there was no significant adverse information that would have reasonably caused Zilch not to lend. A single missed payment the month prior was insufficient grounds to refuse lending, and subsequent adverse information was not available at the time of the lending decision.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website