Not upheld: Irresponsible lending complaint against Loans 2 Go Limited

Decision detail

Summary

Mr M complained that Loans 2 Go Limited lent irresponsibly when providing him with a £1,000 loan in October 2025 requiring monthly repayments of £195.56 over 18 months. Loans 2 Go's affordability assessment showed Mr M had a net monthly income of approximately £1,747, existing debt obligations of around £200 per month, housing costs of £582, and other essential expenses of £470, leaving approximately £300 in disposable income. Mr M argued that his actual debt payments were higher and that his credit cards being at maximum limits should have prompted further investigation. The ombudsman found that Loans 2 Go's checks were reasonable and proportionate, using verified figures and information from credit reference agencies that showed no adverse markers or missed payments. The ombudsman concluded that based on the information available to Loans 2 Go, there was nothing to suggest Mr M could not sustainably repay the loan, and therefore rejected the complaint.

The Ombudsman's reasoning

The ombudsman applied the regulatory requirement for reasonable and proportionate affordability checks that are borrower-focused. The ombudsman reviewed Loans 2 Go's assessment and found it used verified figures where available and reasonably calculated figures where they were not. The ombudsman concluded that based on the information available to Loans 2 Go at the time, there was nothing to suggest Mr M was likely to be unable to sustainably repay the loan. Regarding Mr M's claim that his actual debt payments were higher than £200 per month, the ombudsman found this was not evident from the credit reference agency information and therefore not something Loans 2 Go should have been aware of. Regarding the credit cards at maximum limits, the ombudsman found this was not concerning given the low balances on other revolving credit accounts and the absence of missed or late payments.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website