Not upheld: irresponsible lending complaint against Oakbrook Finance Limited

Decision detail

Summary

Miss K complained that Oakbrook Finance Limited irresponsibly provided her with a £2,500 loan in June 2025. The ombudsman examined the firm's pre-lending checks and found they were reasonable and proportionate for the credit limit offered. Miss K had nine active accounts in good standing with no defaults or CCJs, total outstanding debts of £8,200, and verified income of £27,500 annually. Although her calculated disposable income was modest at around £149, this was likely understated as it included housing costs despite her living with parents. The ombudsman concluded that based on the available data, there was nothing to suggest Miss K would be unable to sustainably repay the loan, and therefore the complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Oakbrook Finance's pre-lending checks were reasonable and proportionate for the credit limit offered. The credit check results did not suggest Miss K was struggling with existing commitments or overindebted. Although Miss K's disposable income was modest at around £149, this was likely an underestimate given that housing costs were included despite Miss K living with parents. The available data showed nothing to suggest Miss K would be unable to sustainably repay the loan. While Miss K used her overdraft and relied on credit, the credit check results themselves did not demonstrate reliance on credit, and the lending appeared affordable based on available data.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website