Not upheld: Irresponsible lending complaint against Nationwide Building Society

Decision detail

Summary

Mr G complained that Nationwide irresponsibly lent him £25,000 in November 2025 without conducting adequate affordability checks. Mr G later fell victim to a scam involving another loan placed two days before the Nationwide loan. The ombudsman found that Nationwide completed proportionate affordability checks appropriate to the circumstances, verified Mr G's declared income of £1,600 through pension payments visible in his bank statements, and that the loan repayment left him with a reasonable monthly buffer. The ombudsman concluded that Nationwide could not have known about the scam or the other loan, as new accounts typically take significantly longer than two days to appear on credit checks. The complaint was not upheld, though the ombudsman noted Nationwide's fair post-scam response of refunding interest and suspending future interest.

The Ombudsman's reasoning

The ombudsman found that Nationwide completed proportionate affordability checks appropriate to the circumstances. The income declared by Mr G (£1,600) was corroborated by pension payments visible in his bank statements. The credit check showed minimal borrowing and no adverse information, indicating financial stability. Multiple credit searches within a short period were considered normal loan shopping behaviour. The loan repayment of £525.40 left Mr G with a reasonable buffer of approximately £410 monthly after estimated essential expenses. Nationwide could not have known about the subsequent scam or the other loan placed two days before, as new accounts do not appear on credit checks within two days. The ombudsman also considered Section 140A of the Consumer Credit Act 1974 but found no unfairness in the lending relationship.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website