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Financial ombudsman not upheld despite no credit check or any validation.

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your complaint about IN-SYNC Credit Services Ltd


Thank you for waiting while I’ve been looking into your complaint.


I’ve now looked at all the information that you and IN-SYNC Credit Services Ltd (IN-SYNC) have given us.

Based on what I’ve seen, I can’t reasonably suggest that IN-SYNC has irresponsibly lent to you and have dealt with your complaint unfairly

– so I can’t ask it to do anything further.


I’ve explained below why, taking into account everything that’s been provided as evidence.

your complaint in summary


You stated in your complaint letter to IN-SYNC that you were borrowing from it on monthly basis.

You’ve complained that IN-SYNC irresponsibly lent to you, as you don’t feel that it carried out sufficient affordability checks.


From the information I’ve been provided, I can see that you had the following loan from IN-SYNC:

 4 August 2016. Loan of £250, where you were required to repay a total of £362 including interest.


what did IN-SYNC have to do

Before agreeing to lend to you IN-SYNC had to check that you could afford to make the repayments.

The checks it did had to be proportionate to things like – but not limited to –

the size of the loan,

the repayments,

what it knew about you,

and the things you told it about your circumstances.


If the checks IN-SYNC did were enough,

we won’t usually say that it shouldn’t have agreed to the loan.

If we don’t think the checks were enough,

and we feel that more proportionate checks would have revealed you couldn’t have afforded the loan,

we’ll ask the business to put things right.


what did IN-SYNC do?

IN-SYNC provided information and stated that it completed a credit search with CallCredit for your application on 4 August 2016.

IN-SYNC has been unable to provide details of the search results

and I have seen no evidence of it completing an income and expenditure assessment of your finances.


was this enough?

The checks completed by IN-SYNC were not proportionate in the circumstances

and I think in order for IN-SYNC to have made a responsible lending decision at this stage,

it not only needed to complete a credit search but also ask you for a detailed breakdown of your monthly income and expenditure.

This would have been reasonable in the circumstances and if IN-SYNC had done this,

I would have considered the checks as proportionate.


You have provided a breakdown of what you have said was your monthly income and expenditure.

This information states:

Total Income - £1100 per calendar month

Rent £300

Council Tax £85

Water £40

Gas £60

Electric £50

Food £200 (celiac)

Household supplies toiletries &



Transport £70

Mobile £35

TV & Broadband £40

Direct Earnings DWP £50

Guarantor Loans £236.25

Total £1266.25



I can see from a separate complaint that you referred to this service that you were asked to provide information regarding your monthly income and expenditure for the

loan you applied for with a separate company.


Although this loan wasn’t taken in the same month as the loan associated with this complaint,

I believe it’s reasonable to suggest that the information you provided at the time is more consistent with what you would have more than likely said if you were asked the

questions I’ve suggested you should have been.


The income and expenditure information from your separate case confirmed that you declared:



Mortgage/Rent Other loans Other




£1250 £200 £20 £270 £760


In light of this, if IN-SYNC were to have carried out the checks I’ve recommended it should have,

it would have more than likely agreed to the loan you applied for.


It may help if I explain that it is generally considered to be reasonable for a lender to rely on a consumers verbal declaration of their income and expenditure at the earlier stages of a lending cycle,

however once we have seen that a consumer has had a considerable amount of loans with a business,

in a short space of time,

we would expect the business to carry out further checks,

given the dependence on the loans shown by the consumer.


As this was your first application with IN-SYNC it wouldn’t be reasonable to suggest that it was required to carry out further checks such as reviewing your bank statements.

I can appreciate that IN-SYNC only completed a credit search,

but I wouldn’t have expected it to do more than what I recommended above and if it had done so,

I believe the information that you would have more than likely provided would have suggested the loan was affordable.


I’ve also had an opportunity to review the credit report you provided

and can’t reasonably say that there is information on there that I can say should have prompted IN-SYNC to carry out further checks.


It is evident that you had some defaults recorded a considerable amount of time prior to applying for this loan

and I can’t suggest that this should have given IN-SYNC cause to decline your application.


If the information had been recorded within six months of your loan applications,

I would have expected IN-SYNC to review additional information such as bank statements and payslips to validate what you had told it.



as the information was recorded a considerable amount of time prior to the loan applications,

I can’t reasonably suggest that IN-SYNC should have seen it as a reason to carry out further checks.


Although you had a very low credit score,

it may also help if I also explain that short term lenders offer a service to many customers who don’t have access to mainstream credit providers due to their credit rating.


Therefore simply having a poor credit score would not in itself mean a payday lender shouldn’t allow borrowing.


my conclusions

Because of this,

I have to tell you that I am unable to recommend that your complaint should be upheld.

I appreciate that this is likely to come as a disappointment to you.



I hope that my explanation has been helpful in setting out clearly why I have to take this view.


what happens next

If you don’t want to take your complaint further, you don’t need to reply.


But if you don’t agree with what I’ve said, please let me know why by 27 October 2017.


I’ll look at any new information you give me and let you know what I think.


If we don’t hear from you by 27 October 2017,

we might not be able to look at your complaint again.

So if you want to reply but you think you’ll need longer,

please tell me as soon as possible.


If you have any questions, please get in touch.


Yours sincerely



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Welcome Welshlad - Thank you for supplying the above.

Is this just an adjudicator?


If so and you wish to proceed further then i would go for the Ombudsman :)

But please tell us more on what happened... I might be of some help :)


We could do with some help from you.


Have we helped you ...?         Please Donate button to the Consumer Action Group



Receptaculum Ignis


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