Not upheld: irresponsible lending complaint against Match the Cash Limited trading as www.guarantorloan.co.uk

Decision detail

Summary

Miss D complained that MTC lent to her irresponsibly when providing a loan in November 2025 to refinance earlier borrowing. Miss D was a sole carer for a disabled child receiving benefit income and had a history of credit problems including CCJs and a disputed default. MTC conducted proportionate affordability checks including income verification through bank statements, expenditure analysis, and credit file review, which showed Miss D had sufficient disposable income to sustain repayments. Although Miss D later experienced financial difficulties and requested token payments, the ombudsman found these circumstances were not reasonably foreseeable at the time of lending and that MTC's checks and lending decision were fair and reasonable. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that MTC's affordability checks were proportionate given the significant five-year commitment involved. The checks included verification of income through bank statements, analysis of normal expenditure, and credit file review. Although Miss D had credit history issues, her explanation regarding the disputed default was considered potentially sufficient to allay concerns. The results of the checks showed Miss D had sufficient disposable income to sustain repayments. The ombudsman noted that subsequent financial difficulties do not necessarily indicate irresponsible lending unless changes were reasonably foreseeable at the time of the decision. The ombudsman also found that Miss D's token payment request was framed in relation to her complaint rather than genuine inability to repay, and that she did not engage with MTC's forbearance process.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website