Not upheld: irresponsible lending - affordability assessment complaint against Lloyds Bank PLC
Financial Ombudsman decision DRN-6397104 of 2026-06-04T00:00:00+00:00. irresponsible lending - affordability assessment complaint against Lloyds Bank PLC. Outcome: Not upheld.
Decision detail
| Reference | DRN-6397104 |
|---|---|
| Decision date | 2026-06-04T00:00:00+00:00 |
| Firm | Lloyds Bank PLC |
| Product | Personal loan |
| Claim type | irresponsible lending - affordability assessment |
| Outcome | Not upheld |
| Remedy | No further remedy ordered. The second loan complaint was already resolved by Lloyds through refund of interest and reduction of outstanding balance by the third party. |
Summary
Miss P complained that Lloyds lent to her irresponsibly by providing two personal loans. Lloyds agreed the second loan (£9,000 in April 2024) shouldn't have been approved and provided remedies including interest refund. However, regarding the first loan (£8,000 in September 2021), the ombudsman found Lloyds conducted proportionate affordability checks, verified Miss P's income through her banking transactions, and the results showed she had sufficient disposable income to sustainably repay the loan. The complaint regarding the first loan was not upheld.
The Ombudsman's reasoning
The ombudsman found that Lloyds's affordability checks were proportionate to the loan application, considering the loan amount, Miss P's income level, and the 60-month repayment period. The checks were borrower-focused and verified Miss P's income through her banking data. The results of those checks showed sufficient disposable income to make repayments sustainably with a surplus for emergencies. The ombudsman concluded that Lloyds acted reasonably in providing the first loan based on the information available and the proportionate nature of its assessment.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Lloyds Bank PLC, all decisions | 19,826 | 16% |
| Personal loan, all decisions | 22,070 | 30% |
Source
Read the original decision on the Financial Ombudsman Service website