Not upheld: Irresponsible lending complaint against Amplifi Capital (U.K) Limited (trading as Reevo Money)

Decision detail

Summary

Mrs P complained that Reevo irresponsibly lent her £5,000 in March 2024 without conducting adequate affordability checks and using incorrect income information. Reevo had conducted a credit check, reviewed the application, verified income through payslips (revising it from £36,000 to £21,000 annually), and completed an affordability assessment using statistical data. The ombudsman found Reevo's checks were proportionate and the lending decision fair, as the verified income of £1,525.20 monthly supported affordability, and even a lower income figure of £1,350 would have shown the loan was affordable. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found Reevo's checks were proportionate to the circumstances. The credit check revealed no recent significant adverse information, and while historic defaults existed, they were five years old. Reevo appropriately verified Mrs P's income through payslips when the initial declared amount seemed inconsistent, settling on £21,000 annually. The affordability assessment using this verified income, combined with statistical estimates for essential expenditure, showed the loan was sustainable. Even when tested against Mrs P's claimed lower income of £1,350, the loan would have remained affordable, particularly given the debt consolidation benefit.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website