Lending Stream Irresponsible Lending

md64

Hi All, 
I have previously complained to LS about a loan I took out in 2018. I applied for it when I was out of work and in mountains of debt. I had already taken out a pdl with quick quid that I couldn’t afford to pay back 3 months before. My credit rating must have been 100 max, there is no way they should have lent to me. 

2 years on I’m cleaning up my credit file so I can apply for a mortgage. The LS loan defaulted and is on my file so I complained to them saying it was irresponsible lending. They did not uphold the complaint and said they believed I could afford it. 

I have taken this to the FOS for irresponsible lending. Has anyone else been successful with this type of complaint? The loan was for £300 and I defaulted after 1 month as I was unemployed with mountains of priority bill debt. 

Thanks 😊 

sourcrates

Yes, the success rate is about 60/40, 60% of complaints been upheld.

[Deleted User]

I assume you mean your credit score must have been 100 ? Doesn't matter the only person that ever sees that is you, very often this can be a case of bad borrowing not bad lending.

Karonher

They would not have seen a credit score. Did you tell them you were in a lot of debt and unable to pay it back when you applied? If the other loan was only 3 months old it may not have been reported in your file as not being paid when they made their checks. 

helpyhelper

The lender is supposed to do a certain amount of checks to confirm you can afford the loan, so even if it is a case of bad borrowing, you might still have a successful complaint. You can see the number of complaints and uphold rate per lender with the fos on their website (I can't post links yet so someone else might be able to share this)