Not upheld: irresponsible lending complaint against Plata Finance Limited
Financial Ombudsman decision DRN-6411690 of 2026-06-09T00:00:00+00:00. irresponsible lending complaint against Plata Finance Limited. Outcome: Not upheld.
Decision detail
| Reference | DRN-6411690 |
|---|---|
| Decision date | 2026-06-09T00:00:00+00:00 |
| Firm | Plata Finance Limited |
| Product | Personal loan |
| Claim type | irresponsible lending |
| Outcome | Not upheld |
| Remedy | Plata should: (1) add up total repayments made by Miss H and deduct from the total loan amount; (2) if overpayments exist, refund them with simple interest at Bank of England base rate plus 1% from date of overpayment; (3) remove all adverse credit file information regarding the loan; (4) if capital balance remains, arrange an affordable and suitable repayment plan; (5) remove adverse information from credit file once balance is cleared; (6) if debt has been sold, buy it back or liaise with third party to ensure redress is carried out. |
Summary
Miss H complained that Plata Finance Limited lent to her irresponsibly, citing her vulnerabilities including a prior abusive relationship. Plata partially upheld the complaint and offered to waive all interest, provide a £780 goodwill credit, and arrange revised payment terms. Miss H sought full write-off of the outstanding balance, but the ombudsman found Plata's offer to be fair and reasonable. The ombudsman acknowledged Miss H's vulnerabilities but concluded that the standard remedy for irresponsible lending—refunding interest while requiring capital repayment—was appropriate, and did not uphold the complaint for full debt forgiveness.
The Ombudsman's reasoning
The ombudsman acknowledged Miss H's vulnerabilities and sympathised with her situation but concluded that Plata's offer was in line with what the FOS reasonably expects a lender to do where it has acted irresponsibly. The standard remedy for irresponsible lending is to refund interest and charges while requiring repayment of the capital lent. The ombudsman found that requiring Plata to write off the outstanding balance would go beyond what is fair and reasonable, even accounting for Miss H's vulnerabilities.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Plata Finance Limited, all decisions | 67 | 18% |
| Personal loan, all decisions | 22,070 | 30% |
Source
Read the original decision on the Financial Ombudsman Service website