Not upheld: Irresponsible lending complaint against Oodle Financial Services Limited

Decision detail

Summary

Mr H complained that Oodle Financial Services Limited irresponsibly lent him £12,690 through a hire purchase agreement in October 2020 for a used car. The agreement required monthly payments of £402.19-£452.18 and ended early in May 2022. Oodle had conducted affordability checks based on Mr H's declared self-employed income of £25,000, existing debts, and credit file information, calculating he would have over £1,000 monthly disposable income. The ombudsman found Oodle's checks were reasonable and proportionate, and that there was insufficient evidence to suggest Mr H would be unable to repay sustainably, particularly given his relatively high declared income and absence of other adverse credit markings. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Oodle's pre-lending checks were reasonable and proportionate given the credit amount and Mr H's financial situation. Based on Mr H's declared income of £25,000, existing debts, and Oodle's calculation showing over £1,000 monthly disposable income, there was insufficient evidence to suggest Mr H would be unable to repay sustainably. The ombudsman rejected the argument that more in-depth checks were necessary, noting Mr H's relatively high declared income, absence of other adverse credit markings, and lower household expenses from living at home.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website