Not upheld: irresponsible lending complaint against Admiral Financial Services Limited

Decision detail

Summary

Mr H complained that Admiral irresponsibly lent him £25,000 in April 2025 for debt consolidation without conducting sufficient affordability checks. Admiral verified his income at £57,005, obtained CRA data showing well-managed credit with no recent arrears or CCJs, and calculated he would have £1,006 disposable income after the loan with monthly outgoings reduced by £250. Mr H later disclosed undisclosed expenditure including childcare and business costs that he believed Admiral should have discovered. The ombudsman found Admiral's checks were reasonable and proportionate, the loan was affordable, and the undisclosed expenditure could not reasonably have been discovered, therefore not upholding the complaint.

The Ombudsman's reasoning

Admiral conducted reasonable and proportionate checks appropriate to the circumstances. The firm verified income independently, obtained CRA data from two sources, and performed affordability calculations using ONS estimates for living costs. The CRA data showed no adverse indicators such as recent defaults, arrears, or CCJs. The loan was affordable with £1,006 disposable income remaining, and if used for its intended purpose would reduce Mr H's monthly outgoings by approximately £250. There was nothing in the checks that should have prompted more in-depth investigation. Mr H's undisclosed expenditure (childcare, business costs, partner debts) could not reasonably have been discovered as it was not disclosed and did not appear on credit files. The ombudsman found no breach of Section 140A of the Consumer Credit Act 1974.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website