Not upheld: irresponsible lending / inadequate affordability checks complaint against Evergreen Finance London Limited trading as MoneyBoat.co.uk

Decision detail

Summary

Mr M complained that MoneyBoat irresponsibly lent him £600 in March 2026 without conducting adequate affordability checks. MoneyBoat verified Mr M's declared income of £3,200 monthly through credit reference agency cross-check and assessed his expenditure at £2,463 (declared £1,325 plus statistical adjustment of £1,138), concluding he had £737 monthly disposable income. A credit check revealed Mr M had £6,926 debt across 12 accounts, was near revolving credit limits, and had experienced brief arrears six months prior which were resolved. The ombudsman found MoneyBoat's checks were proportionate given the loan's small size and short term, and that the information gathered did not reveal sufficient warning signs to refuse lending. The complaint was not upheld, though the ombudsman reminded MoneyBoat to treat Mr M fairly regarding his outstanding balance and request for an affordable repayment plan.

The Ombudsman's reasoning

The ombudsman applied the FOS approach to irresponsible lending, requiring MoneyBoat to conduct proportionate checks to ensure sustainable repayment. Given the loan was relatively small (£600), short-term (17 weeks), and Mr M's first with MoneyBoat, proportionate checks were satisfied by income verification via credit reference agency cross-check and expenditure assessment using declared figures adjusted by statistical data. The credit check revealed no significant red flags: while Mr M was near revolving credit limits and had prior arrears, these had been resolved and his repayment record was good. With £737 monthly disposable income against weekly repayments of £54.65, the loan appeared affordable on a pounds and pence basis. The ombudsman acknowledged Mr M's actual financial situation may have been worse than the information gathered suggested, but concluded that more forensic analysis (such as bank statement review) was not required given the loan's size and duration. The ombudsman noted that affordability on a pounds and pence basis, while not determinative of sustainability, combined with the absence of warning signs in the credit report, made it reasonable for MoneyBoat to lend.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website