Partially upheld: irresponsible lending - affordability assessment and pattern of lending complaint against Gain Credit LLC trading as Lending Stream
Financial Ombudsman decision DRN-5786676 of 2026-05-14T00:00:00+00:00. irresponsible lending - affordability assessment and pattern of lending complaint against Gain Credit LLC trading as Lending Stream. Outcome: Partially upheld.
Decision detail
| Reference | DRN-5786676 |
|---|---|
| Decision date | 2026-05-14T00:00:00+00:00 |
| Firm | Gain Credit LLC trading as Lending Stream |
| Product | Payday / short-term credit |
| Claim type | irresponsible lending - affordability assessment and pattern of lending |
| Outcome | Partially upheld |
| Remedy | For Loan 4: Refund all interest and fees paid with 8% simple annual interest. Remove adverse credit information if applicable. For Loan 5: Remove all interest and charges, apply payments to reduce to original capital of £300, offset by Loan 4 refund amount. If surplus remains, pay to Mr P with 8% simple annual interest. If outstanding balance remains, remove adverse credit information when paid off and establish suitable payment arrangement. Tax deduction applies to interest per HMRC requirements. |
Summary
Mr P complained that Lending Stream lent to him irresponsibly across 5 loans taken between November 2023 and March 2025, with Loans 2-5 overlapping within a 4-month period. The ombudsman found Loans 1 and 2 were fairly lent and Loan 3 was affordable despite Mr P's concerns about his deteriorating financial situation and existing external debts. However, Lending Stream itself upheld Loans 4 and 5 as irresponsibly lent, which the ombudsman endorsed. The ombudsman ordered Lending Stream to refund interest and fees on Loans 4 and 5 with 8% interest, remove adverse credit information, and establish a suitable payment arrangement for any outstanding balance on Loan 5.
The Ombudsman's reasoning
The ombudsman applied the FCA's CONC 5.2A regulatory framework for responsible lending. While questioning Lending Stream's £2,500 monthly expenditure calculation, the ombudsman found that even using that figure, Loan 3 remained affordable with £305.64 disposable income remaining. The ombudsman reviewed Mr P's actual bank statements and found expenditure was likely much lower than calculated, meaning the loan was even more affordable. The ombudsman rejected the argument that Mr P was in financial difficulties, noting that occasional overdraft use, one debt collection payment, and the existence of savings did not meet the FCA's definition of financial difficulties. The ombudsman found Lending Stream conducted proportionate checks including Open Banking verification and had sufficient information to make a fair lending decision for Loan 3. However, the ombudsman upheld Loans 4 and 5 as Lending Stream itself had conceded these were lent irresponsibly.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Gain Credit LLC trading as Lending Stream, all decisions | 12 | 33% |
| Payday / short-term credit, all decisions | 9,689 | 50% |
Source
Read the original decision on the Financial Ombudsman Service website