Not upheld: irresponsible lending / inadequate affordability checks complaint against Shop Direct Finance Company Limited trading as Very

Decision detail

Summary

Miss O complained that Very lent irresponsibly when approving a £750 catalogue shopping account in January 2025, arguing that proper affordability checks were not conducted and that she fell into arrears within months. The ombudsman found that while Very's initial checks were not proportionate, a hypothetical proper assessment using Miss O's bank statements would have shown she had approximately £190 monthly disposable income after essential expenses, sufficient to afford the £38 monthly repayment if the account was fully utilised. The ombudsman also noted that Very was unaware of Miss O's pregnancy and low bank balances, and that Very appropriately provided forbearance when Miss O disclosed financial difficulties in July 2025. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that while Very's initial checks were not reasonable and proportionate, a hypothetical proportionate assessment based on Miss O's bank statements would have shown sufficient disposable income (approximately £190 per month after essential expenses of £341 and income of £667) to afford the modest monthly repayment of £38 if the account was fully utilised. The ombudsman considered that Very was not aware of Miss O's pregnancy or low bank balances, and that Very acted fairly in providing forbearance once Miss O disclosed her financial difficulties in July 2025.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website