Personal Loan

A bank may apply third-party funds received in error to offset an outstanding defaulted loan, but must return surplus funds without unreasonable delay.

A lender may decline a request to change mortgage parties based on its commercial lending criteria and affordability assessment, without obligation to disclose detailed reasoning for commercially sensitive decisions.

A motor finance relationship is unfair under s140 CCA only where there is a discretionary commission arrangement, high commission relative to credit cost, or a commercial tie between lender and dealer, and these must be undisclosed.

A lender must carry out fair and proportionate affordability checks appropriate to the loan value and term, but incomplete evidence means the complaint cannot be upheld if the available evidence suggests the loan was likely affordable.

A lender must complete reasonable and proportionate affordability checks before lending, with checks tailored to the borrower's individual circumstances and the credit amount.

A financial institution may fairly load a negative fraud marker on the National Fraud Database if they have clear, relevant and rigorous evidence that a financial crime was committed and the customer was complicit in receiving the fraudulen

Lenders must conduct reasonable and proportionate affordability checks appropriate to the loan value and lending stage, but are not required to obtain detailed expenditure breakdowns for smaller loans.

Unregulated Bounce Back Loans are self-attested schemes where lenders are not required to perform due diligence checks and cannot be held responsible for the scheme's design or third-party misrepresentation.