Not upheld: irresponsible lending complaint against Madison CF UK Limited trading as 118 118 Money

Decision detail

Summary

Ms M complained that Madison CF UK Limited trading as 118 118 Money irresponsibly provided her with a £2,500 loan in March 2025. The ombudsman reviewed the firm's pre-lending checks, which included income verification showing £1,744 monthly income and credit checks revealing historic defaults from April 2023 and isolated but resolved missed payments. Although Ms M's actual rent was higher than estimated and her bank statements showed minimal disposable income, the ombudsman found the firm's checks were reasonable and proportionate, and that the calculated disposable income of approximately £670 after loan repayments was sufficient. The complaint was not upheld as there was nothing to suggest Ms M would be unable to sustainably repay the credit.

The Ombudsman's reasoning

The ombudsman found that 118 118 Money's pre-lending checks were reasonable and proportionate. The firm verified Ms M's income using an industry tool, reviewed her credit history which showed historic rather than recent defaults, and assessed her existing credit commitments. Although Ms M's actual rent was higher than estimated and her bank statements showed minimal disposable income, the ombudsman accepted that the firm was not required to request bank statements given the overall picture from income and credit checks, the size of the loan relative to income, and the calculated disposable income of approximately £670 after loan repayments. Based on the information gathered, there was nothing to suggest Ms M would be unable to sustainably repay the loan.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website