Not upheld: Irresponsible lending complaint against Lendable Ltd

Decision detail

Summary

Miss R complained that Lendable Ltd irresponsibly provided her with a £7,500 loan in September 2024. Miss R later claimed she had not been earning since April 2024 and argued that her income and expenses should have undergone further checks. The ombudsman found that Lendable's pre-lending checks were reasonable and proportionate, with credit checks showing Miss R had total outstanding debt of £8,574 but was managing her commitments with no recent defaults. Although Miss R later disputed her employment status, her application stated full-time employment with income of £1,793 verified by an industry tool, and the credit checks showed no signs of financial difficulty. The ombudsman concluded that Lendable reasonably relied on the declared income and that Miss R had reasonable disposable income after loan repayments, so the complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Lendable's pre-lending checks were reasonable and proportionate given the credit offered and what was known about Miss R's financial situation. The credit checks showed Miss R was not over-indebted and was managing her existing commitments. Although Miss R later claimed she had not been earning since April 2024, her application stated full-time employment with income verified by an industry tool, and the credit checks showed no signs of financial difficulty. Therefore, it was reasonable for Lendable to rely on the declared income and not require further verification. The disposable income remaining after new loan repayments was reasonable, and there was nothing to suggest Miss R would be unable to sustainably repay the loan.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website