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Advice re final response to irresponsible lending complaint

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  • Advice re final response to irresponsible lending complaint

    Hi All,

    Apologies for the lengthy post, I'm trying to include as much information as possible.

    I made an irresponsible lending complaint to Likely Loans/TA Oakbrook Finance LTD.

    They have provided their final response which confirms that they are not upholding the complaint.

    They have stated that they carried out a standard credit assessment, which included a review of my credit report with Experian and any financial commitments, insolvency records, delinquency records, County Court Judgments and credit enquiries were analysed.

    They state that all the information gathered is input into their internal credit scoring model. If the generated score does not meet our minimum approval threshold score, then the loan application is declined. If there is negative information on a credit report, this does not necessarily mean that an application for a loan will be declined.

    Their records show I applied for the following loan:
    • Application for a loan in the amount of £5000 was received on the 17th May 2018.
    • Their records show I declared I was employed with an annual income of £31,000.00. I provided a loan reason of debt consolidation and stated a residential status of homeowner.
    • My application was accepted on the 18th May 2018, with the sum of £13238.4 repayable by 60 monthly instalments of £220.64; this was considered affordable from the information available to them.
    Their decision
    Complaint not upheld

    They say from assessing the information available to Likely Loans at the time of my application and also reviewing my credit file with the credit reference agency, Experian. They say they did not find any defaulted accounts but did see one account which was opened in 2015 with a debt management plan added in February 2019 – after loan was issued by Likely Loans.

    They claim my income, creditor commitments at the time of lending including mortgage, showed i had sufficient disposable income to ensure the loan was affordable according to the information available to them. Furthermore, theyve added that the purpose of the loan was for debt consolidation which meant i would be settling some if not most of your creditor commitments. The loan was also taken out over a 5 year period to spread the cost of borrowing. After reviewing this data, they could not see any reason that would have prevented them from providing this loan.

    In January 2020 I downloaded a copy of my multi agency credit record. This multi agency credit record shows 3 defaults registered with all 3 credit reference agencies. It also shows one account which was in arrears for 25 months before it was settled. So I dont understand how they can say they did not find any defaulted accounts.

    In January 2020 I raised complaints with the companies regarding when the defaults were registered as I believed they should have been registered sooner than they were which would have resulted in them being removed from my credit record last year. I was successful with my complaints and it was agreed that all defaults would be removed from my credit record.

    Today i signed up to Experian and note that it shows 0 defaults so they have been removed as per my complaints.

    They claim to have seen an account on my Experian report that was opened in 2015 with a DMP added in February 2019 after the loan was issued. This account is not reporting in this way on my Experian credit report. This matches with Transunion not Experian.

    I also note that Oakbrook Finance carried out a search on my credit file yesterday, I assume prior to issuing their final response so maybe they have based the comment regsrding the defaults on my credit report as it stands now and not as it was in May 2018. Surely it doesnt matter what shows on my credit record now, it's what showed in May 2018 that they needed to assess.

    n addition to the above they did not ask for evidence of my income or expenditure so how can the deem the loan to be affordable when they dont know the true extent of my outgoings?

    How can they consider that I have sufficient disposable income when they dont know how much of my annual salary is deducted at source so my take home pay is less than that of someone on the same annual salary as me with just the standard tax and national insurance deductions and they dont know how much my council tax is, gas, electric, water, food, other bills and their application form didnt even ask for how many dependants I have.

    I did send a SAR and all they provided in relation to the loan application is the very basic loan information they asked for, basically what they have used to formulate their final response, my annual salary; home owner, employed and reason for the loan.

    Do you think it is worth going back to them with the information I have outlined above or go straight to the FOS and provide the evidence to them.

    Thanks for reading


  • #2
    The next step would be to refer your complaint to the FOS.

    Were you in a DMP when you took out this loan in April 2018?

    Your Diary post (below) doesn't say, but on another thread you refer to setting up a DMP with StepChange in 2013 >

    Originally posted by d_mcl85 View Post
    Due to a change in personal circumstances I started missing payments on a Barclaycard Card in May 2013. I set up a Debt Management Plan with Step Change at this time.

    Originally posted by d_mcl85 View Post
    Oakbrook Finance LTD/Likely Loans
    • Type of account - Personal Loan
    • Date commenced - April 2018
    • Approx balance - £12,083.60
    • Date last 'full' payment - July 2018
    • Date of last payment - Feb 2020
    • Arrangement - DMP
    • Status - Arrears
    • Account owner - Oakbrook Finance
    25.1.20I Uunaffordable/irresponsible lending complaint made
    3.2.20 - Likely loans confirmed receipt of complaint and aim to respond within 8 weeks.
    10.02.20 SAR made
    11.02.20 CCA request made
    12.02.20 CCA signed for
    20.02.20 CCA received along with information they hold in relation to the SAR made (application details, statements of account, temporary arrangement to pay letters and notice of sum in arrears)
    20.03.20 Final response received from Likely Loans/Oakbrook Finance LTD to my irresponsible lending complaint they are not upholding the complaint.
    Legal Disclaimer

    I am a Litigation Executive at Joanna Connolly Solicitors a firm which specialises in consumer credit. If you need to contact me you can send a message by clicking on my username or by emailing me at or by telephoning 0330 053 9340. My Direct Line is 0151 254 6986 Our initial advice is always free.

    Any posts I make on the AAD Consumer Forum are for information and discussion purposes only and shouldn't be seen as legal advice. Any advice I provide on the forum is without liability. If you are unsure please seek formal legal guidance or contact your local citizens advice bureau at


    • #3
      Hi Di,

      I have got my complaint ready to submit to the FOS tomorrow. I have been getting my documents together to back up my complaint; bank statements, payslips, multi agency credit report etc..

      Yes I was on a DMP with Step Change when I took this loan out with Likely Loans

      Likely Loans did not ask for any evidence of income or expenditure, if they had they'd have been aware that I was already on a DMP..

      I believe I have a strong case and hopefully the FOS will agree that they acted irresponsibly.