Not upheld: Irresponsible lending complaint against Stellantis Financial Services UK Limited (trading as Vauxhall Finance)

Decision detail

Summary

Miss S complained that Vauxhall Finance provided a conditional sale agreement for a used car irresponsibly, claiming she could not afford to repay it sustainably. The agreement was for £19,334.71 with monthly payments of £323.15. The ombudsman found that while Vauxhall Finance's affordability checks were not fully documented, the available evidence showed Miss S had approximately £1,700 monthly income with existing commitments of £430 and living expenses of £540, leaving approximately £700 disposable income. This was sufficient to cover the new monthly instalment and maintain other obligations. The ombudsman found no evidence of financial difficulties or unsustainability and therefore did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman acknowledged that full details of Vauxhall Finance's affordability checks were not provided, making it impossible to assess whether they were reasonable and proportionate. However, the ombudsman proceeded to consider what better checks would likely have revealed. Based on Miss S's documented monthly income of approximately £1,700, existing credit commitments of around £430, and typical living expenses of around £540, the ombudsman calculated approximately £700 in disposable income available. This was sufficient to cover the new monthly instalment of £323.15 and maintain other financial obligations. The ombudsman found no sufficient evidence of financial difficulties or likelihood of future difficulties. The ombudsman also considered Miss S's later claim about job tenure discrepancy, her existing credit levels, and other lenders' decisions, but concluded these did not change the affordability assessment. The ombudsman concluded that even with better checks, the lending would likely have appeared affordable and sustainable.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website