Upheld: irresponsible lending - inadequate affordability checks complaint against CREDIT CORP FINANCIAL SERVICES (UK) LIMITED
Financial Ombudsman decision DRN-6099769 of 2026-06-09T00:00:00+00:00. irresponsible lending - inadequate affordability checks complaint against CREDIT CORP FINANCIAL SERVICES (UK) LIMITED. Outcome: Upheld.
Decision detail
| Reference | DRN-6099769 |
|---|---|
| Decision date | 2026-06-09T00:00:00+00:00 |
| Firm | CREDIT CORP FINANCIAL SERVICES (UK) LIMITED |
| Product | Personal loan |
| Claim type | irresponsible lending - inadequate affordability checks |
| Outcome | Upheld |
| Remedy | Credit Corp must: (1) calculate total repayments made and deduct from total amount received; (2) refund any overpayment with 8% simple interest from date of overpayment; (3) arrange affordable and sustainable repayment plan for any remaining capital balance; (4) remove adverse credit file information once balance is cleared. If debt sold to third party, Credit Corp must buy it back or ensure third party carries out redress. |
Summary
Mr H complained that Credit Corp irresponsibly provided him with an £8,000 fixed sum loan in February 2023 without conducting appropriate affordability checks. The loan had a total repayable amount of £16,744.48 over 60 monthly instalments. Credit Corp upheld the complaint and offered to write off all interest and charges, requiring Mr H to repay only the capital borrowed minus payments made. Mr H rejected this offer and requested the entire outstanding balance be written off. The ombudsman upheld the complaint but found Credit Corp's proposed remedy fair and reasonable, as Mr H received the benefit of the funds and should therefore repay the capital borrowed.
The Ombudsman's reasoning
The ombudsman found that while the loan was irresponsibly lent, Mr H received the benefit of the funds and therefore should repay the capital borrowed. The standard remedy for irresponsible lending complaints is to refund all interest, fees and charges so the consumer repays only the amount lent. The ombudsman rejected the request to write off the entire outstanding balance as there were no circumstances justifying complete forgiveness of the capital amount.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| CREDIT CORP FINANCIAL SERVICES (UK) LIMITED, all decisions | 1 | 100% |
| Personal loan, all decisions | 22,070 | 30% |
Source
Read the original decision on the Financial Ombudsman Service website