Not upheld: Irresponsible lending complaint against Oakbrook Finance Limited trading as Finio Loans

Decision detail

Summary

Miss K complained that Oakbrook Finance Limited lent irresponsibly when approving a £2,000 loan in September 2024, arguing that her financial difficulty, credit reliance, and severe gambling problem were evident in her bank statements and should have prompted more thorough checks. Oakbrook verified Miss K's income at £40,095 annually, calculated disposable income of £727.16 after expenses and existing credit obligations, and found no adverse credit indicators. The ombudsman found the checks proportionate to the loan amount and circumstances, with no information indicating financial difficulty that would have required further investigation, and concluded that bank statement review would not have been proportionate and gambling evidence would not have been available to Oakbrook at the time of lending.

The Ombudsman's reasoning

The ombudsman applied the regulatory requirement for proportionate checks based on the type, amount, duration and cost of credit and borrower's circumstances. The checks conducted by Oakbrook were found to be reasonable and proportionate, revealing a healthy disposable income of £727.16, well-managed existing lending, and no indicators of financial difficulty. The ombudsman concluded that bank statement review would not have been proportionate for a £2,000 loan, and that the £4,000 loan taken after application could not reasonably have been known to Oakbrook. The information obtained from proportionate checks did not indicate Miss K was in financial difficulty or vulnerable, and therefore did not prompt a requirement for further investigation.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website