Not upheld: Irresponsible lending complaint against Bamboo Limited

Decision detail

Summary

Mr B complained that Bamboo Limited lent to him irresponsibly by failing to conduct proper affordability checks before approving a £1,000 loan in December 2020. Mr B argued that adequate checks would have revealed his history of financial difficulties and that the lender relied too heavily on modelling data. Bamboo verified Mr B's income through a third party, reviewed his credit file (which showed historic defaults but no current serious issues), and estimated his expenditure using ONS data, calculating disposable income of approximately £1,600 monthly. The ombudsman found the checks were reasonable and proportionate given the loan amount, purpose (debt consolidation), and recent credit file content, and that the calculated figures supported sustainable repayments. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Bamboo's affordability checks were reasonable and proportionate given the amount of credit (£1,000), the positive content of recent credit file items, and the purpose of the loan (debt consolidation). The income verification through a third party and the use of ONS modelling data to estimate expenditure, combined with the calculated disposable income of approximately £1,600 per month, demonstrated that sustainable repayments could be made. The ombudsman rejected Mr B's argument that bank statements should have been requested, finding this was not necessary or proportionate at the time of lending. The ombudsman also rejected reliance on a different lender's upheld complaint regarding a credit card, noting that each case must be decided on its own merits and the products involved were different.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website