Not upheld: irresponsible lending / unaffordable lending complaint against Oodle Financial Services Limited

Decision detail

Summary

Mrs J complained that Oodle unfairly entered into a hire-purchase agreement for a car without properly checking whether she could afford the monthly payments of £258.80-£308.80 over 48 months. Oodle had obtained Mrs J's salary details, conducted credit searches showing no adverse information, and calculated that the payments were affordable after deducting estimated living expenses and existing credit commitments. The ombudsman rejected Mrs J's complaint, finding that Oodle's checks were proportionate and that Mrs J's actual repayment record—making all payments on time and settling the agreement early—contradicted her claim that the payments were unaffordable. The ombudsman also noted that Mrs J's later bank statement analysis, conducted in support of a compensation claim, was less reliable than her original representations made when seeking the loan.

The Ombudsman's reasoning

The ombudsman concluded that Oodle's checks were proportionate given the lack of significant adverse credit information and that the available information at the time suggested the payments were affordable. The ombudsman noted that Mrs J's later bank statement analysis was made in support of a compensation claim and was less reliable than her original representations made to secure the loan. Critically, Mrs J's actual repayment record—making all payments on time and settling early—contradicted her claim that the payments were unaffordable.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website