Not upheld: Irresponsible lending complaint against Black Horse Limited trading as Jaguar Financial Services

Decision detail

Summary

Mr H complained that Jaguar Financial Services provided him with an unaffordable hire purchase agreement. Jaguar had completed a credit check and obtained income information but did not fully validate the income or document non-discretionary expenditure calculations. The ombudsman found that while Jaguar's checks were not reasonable and proportionate, bank statement evidence showed sufficient household disposable income to sustainably afford the repayments. Since Mr H maintained a perfect repayment record and did not contact Jaguar about financial difficulties until making his complaint in 2026, the ombudsman concluded the lending decision was fair and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that while Jaguar's checks were not reasonable and proportionate in terms of validation and documentation, the bank statements provided by Mr H demonstrated sufficient disposable income on a household basis to sustainably afford the repayments. The perfect repayment record and absence of any contact about financial difficulties prior to the complaint indicated Jaguar was not aware of, and had no reason to be aware of, any affordability issues. The regulatory rules do not prescriptively require specific information, and the evidence available showed the lending decision was fair.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website