Not upheld: Service failures generally complaint against Western Circle Ltd trading as Cashfloat

Decision detail

Summary

Mr G complained that Cashfloat failed to manage his account fairly and with appropriate consideration for his vulnerability and financial difficulty. He had been provided a £500 personal loan in June 2022 and experienced mental health difficulties (unmanaged ADHD and anxiety) and financial instability, though he only disclosed arthritis-related hospitalisation to Cashfloat. The firm arranged alternative repayment plans and changed payment dates when requested, but Mr G felt the support was reactive rather than proactive. The ombudsman found that Cashfloat showed appropriate forbearance based on the information it possessed and could not have reasonably been aware of Mr G's undisclosed mental health conditions, therefore rejecting the complaint.

The Ombudsman's reasoning

The ombudsman acknowledged that firms must show forbearance to customers in financial difficulty and treat vulnerable customers fairly, and that explicit disclosure is not always necessary. However, the ombudsman found that Cashfloat did show appropriate forbearance by agreeing a reduced repayment plan over a longer term and changing payment dates at Mr G's request. While the pattern of missed payments indicated potential affordability issues, Mr G did not disclose the full extent of his vulnerabilities and provided alternative explanations for missed payments. The ombudsman concluded that Cashfloat attempted to engage with Mr G and could not have reasonably been aware of his undisclosed mental health conditions, and therefore could not have been expected to take further action based on information it did not possess.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website