Financial Ombudsman Service puts spotlight on affordability

The Financial Ombudsman Service has warned that some businesses may not be doing enough to check that people can afford the finance agreements they are signing up to.

In its Annual Review 2018/2019 released last week, FOS stated that it had seen complaints where it was clear that car finance businesses are doing risk-based assessments rather than affordability checks.

The Ombudsman would like businesses to rely less on just credit files and look into whether people can actually afford the repayments.