Upheld: irresponsible lending complaint against Oodle Financial Services Limited trading as Oodle Car Finance
Financial Ombudsman decision DRN-6347621 of 2026-05-19T00:00:00+00:00. irresponsible lending complaint against Oodle Financial Services Limited trading as Oodle Car Finance. Outcome: Upheld.
Decision detail
| Reference | DRN-6347621 |
|---|---|
| Decision date | 2026-05-19T00:00:00+00:00 |
| Firm | Oodle Financial Services Limited trading as Oodle Car Finance |
| Product | car finance loan |
| Claim type | irresponsible lending |
| Outcome | Upheld |
| Remedy | Oodle must calculate total repayments made by Mr T and deduct from the £6,000 borrowed. If Mr T overpaid, refund the difference plus simple interest at Bank of England base rate plus 1% from date of overpayment. If capital remains outstanding, arrange an affordable payment plan. Remove all adverse information from Mr T's credit file either upon refund or upon clearance of any remaining balance. |
Summary
Mr T complained that Oodle irresponsibly provided him with a £6,000 car finance loan in July 2024. The ombudsman found that Oodle's pre-lending checks were inadequate given Mr T's visible credit reliance (nine active cards at 94% utilisation) and recent loan default. Although Oodle's assessment suggested sufficient disposable income, the ombudsman concluded that proper investigation would have revealed Mr T was financially vulnerable with compulsive spending patterns and unable to sustainably repay. The complaint was upheld and Oodle was ordered to refund overpayments with interest and remove adverse credit file information, or arrange an affordable payment plan for any remaining balance.
The Ombudsman's reasoning
The ombudsman found that Oodle's pre-lending checks were not reasonable and proportionate given the loan amount and Mr T's known financial situation. Although Oodle's assessment suggested sufficient disposable income, the clear signs of credit reliance and recent default should have prompted further investigation into actual financial circumstances. The ombudsman concluded that proper checks would have revealed Mr T was financially vulnerable with compulsive spending patterns and unable to sustainably repay the loan.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Oodle Financial Services Limited trading as Oodle Car Finance, all decisions | 19 | 24% |
Source
Read the original decision on the Financial Ombudsman Service website