Not upheld: credit application decline / affordability assessment complaint against BMW Financial Services (GB) Limited trading as ALPHERA a Financial Services

Decision detail

Summary

Mrs P complained that BFS unfairly declined her application to refinance the balloon payment on her car finance agreement. BFS rejected the application on the grounds that Mrs P was 'fully financially committed' and that further finance would be unaffordable. The ombudsman found that BFS had fairly assessed the application based on payment history, credit reference agency information, and bank statements, which revealed missed payments and adverse credit history. Although sympathetic to Mrs P's difficult circumstances, the ombudsman determined that BFS acted reasonably in declining the application and that it is not within the FOS's remit to instruct a firm to offer finance.

The Ombudsman's reasoning

The ombudsman found that BFS fairly assessed Mrs P's credit application using appropriate information including payment history, credit data, and bank statements. The evidence demonstrated missed payments and adverse credit history, which led BFS to reasonably conclude that further borrowing would be unaffordable and irresponsible. While sympathetic to Mrs P's circumstances, the ombudsman confirmed it is not within the FOS remit to instruct a firm to offer finance, only to assess whether the application was considered fairly.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website