Not upheld: Debt collection practices complaint against Lendable Ltd

Decision detail

Summary

Mr C complained that Lendable Ltd refused to write off the remaining balance of a £4,500 loan despite providing evidence of serious mental health conditions and financial strain from a debt management plan. Mr C argued that the requirement to continue repayments was worsening his health and that he should be treated as a vulnerable consumer entitled to debt write-off. Lendable declined the write-off, explaining its policy only covers situations where customers have no realistic prospect of repaying, and offered alternatives such as reduced repayments or partial settlement. The ombudsman did not uphold the complaint, finding that because Mr C is able to maintain his DMP payments, he has financial capacity to repay the debt, and that Lendable's approach and alternative offers were reasonable and showed forbearance.

The Ombudsman's reasoning

The ombudsman found that Lendable's policy of writing off debt only when a customer has no realistic prospect of repaying is not unreasonable. Although Mr C is struggling and his mental health is deteriorating, he is able to maintain repayments through his DMP, which indicates financial capacity to repay. The ombudsman acknowledged Mr C's vulnerabilities and medical circumstances but found that Lendable has acted with forbearance by offering alternatives such as reduced repayments and partial settlement. The ombudsman also clarified that allegations of discrimination under the Equality Act 2010 cannot be decided by the FOS, only by a court.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website