Not upheld: Irresponsible lending complaint against Nationwide Building Society

Decision detail

Summary

Mr W complained that Nationwide Building Society irresponsibly provided him with a £5,500 loan in March 2020. Nationwide had conducted an income and expenditure assessment and credit check, which showed Mr W was employed full time with net monthly income of £1,800, living with parents, with no adverse credit history or existing unsecured debt. After deducting estimated expenses and loan repayments, Mr W had approximately £975 disposable income monthly. The ombudsman found Nationwide's checks were reasonable and proportionate, and that nothing suggested Mr W would be unable to sustainably repay the loan. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found Nationwide's pre-lending checks were reasonable and proportionate given the loan amount and Mr W's circumstances. The checks revealed stable full-time employment, verified income of £1,800 monthly, no adverse credit history, and no existing unsecured debt. With estimated expenses deducted, Mr W retained approximately £975 disposable income monthly, indicating he could sustainably repay the loan. The use of expense estimates was reasonable given Mr W's credit profile and stated living situation with parents.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website