Not upheld: irresponsible lending complaint against Madison CF UK Limited trading as 118 118 Money

Decision detail

Summary

Mrs J complained that Madison CF UK Limited trading as 118 118 Money irresponsibly lent her £1,000 in April 2024. Mrs J's credit file showed adverse indicators including three delinquent accounts, recent missed payments, and a historic county court judgement, with total existing credit balances of £2,257. The ombudsman found that while 118 118 Money's initial checks were not fully proportionate to the risk, a proper assessment of Mrs J's bank statements would have shown she had regular income (including benefits) exceeding £1,510 per month with credit commitments of around £250, making the loan sustainably affordable. The complaint was not upheld, and no remedy was ordered.

The Ombudsman's reasoning

Although 118 118 Money's initial checks were not fully proportionate given the adverse credit data, the ombudsman found that if proportionate checks had been conducted, they would not have revealed that the loan was unfair to provide. Mrs J's bank statements demonstrated regular income (including benefits) exceeding her declared figure, with credit commitments of around £250 per month. Even accounting for the additional loan taken in March 2024, the overall debt burden and the affordability of the £1,000 loan repayments did not raise concerns. There was nothing to suggest Mrs J would be unable to sustainably repay the loan based on her circumstances at the time.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website