Not upheld: Irresponsible lending complaint against Black Horse Limited

Decision detail

Summary

Mr K complained that Black Horse Limited irresponsibly provided him with a hire purchase agreement for approximately £8,400 in 2020. The ombudsman found that while Black Horse did not supply clear evidence of credit checks performed, the complainant's bank account information demonstrated no financial difficulty and indicated adequate disposable income of approximately £310 monthly after accounting for the repayments. The ombudsman concluded that if Black Horse had conducted proportionate checks, they would not have revealed unfairness in providing the credit, and therefore did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman acknowledged that Black Horse did not supply clear evidence of performing reasonable and proportionate checks. However, the ombudsman's own review of the complainant's bank account information revealed no indicators of financial difficulty or inability to sustain repayment. The complainant's income of £1,440 monthly against essential expenditure of £920 left approximately £310 disposable income after the hire purchase repayments, suggesting the credit was affordable. The ombudsman concluded that if Black Horse had performed proportionate checks, they would likely not have revealed unfairness in providing the credit.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website