Partially upheld: Irresponsible lending complaint against Gain Credit LLC
Financial Ombudsman decision DRN-6168659 of 2026-03-02T00:00:00+00:00. Irresponsible lending complaint against Gain Credit LLC. Outcome: Partially upheld.
Decision detail
| Reference | DRN-6168659 |
|---|---|
| Decision date | 2026-03-02T00:00:00+00:00 |
| Firm | Gain Credit LLC |
| Product | Payday / short-term credit |
| Claim type | Irresponsible lending |
| Outcome | Partially upheld |
| Remedy | Lending Stream must refund Miss Y the interest and charges incurred on Loan 4 plus simple annual interest of 8% calculated from the date payments were made to the date of settlement. Lending Stream must amend Miss Y's credit file to remove any adverse payment history for Loan 4. Lending Stream must provide a tax certificate if Miss Y requests one. |
Summary
Miss Y complained that Lending Stream lent to her irresponsibly by approving loans when she could not afford them and approving loans while others were outstanding. The ombudsman reviewed four loans and upheld the complaint in part, finding that Loan 4 should not have been approved but that Loan 3 was appropriately lent. For Loan 3, Lending Stream carried out proportionate checks including income verification and credit search, and calculated sufficient disposable income of approximately £249 to cover the monthly repayments of just over £155. The ombudsman rejected Miss Y's arguments regarding prior defaults, 'buy now pay later' arrangements, and gambling transactions, finding these either were not visible to Lending Stream or would not have changed its decision. The remedy requires Lending Stream to refund interest and charges on Loan 4 with 8% simple annual interest and amend Miss Y's credit file.
The Ombudsman's reasoning
The ombudsman applied the principle that lenders must carry out proportionate checks to ensure lending is sustainable. For Loan 3, Lending Stream carried out appropriate checks including income verification and credit search, and acted reasonably by adjusting the declared figures based on the information obtained. The ombudsman found the calculated disposable income of approximately £249 (or £93 depending on calculation method) was sufficient to cover the monthly repayments of just over £155. The ombudsman rejected Miss Y's arguments that the 2022 default, 'buy now pay later' arrangements, or gambling transactions should have triggered additional checks, as these either were not visible to Lending Stream or would not have changed its decision. The ombudsman found no evidence that Lending Stream knew or should have known about Miss Y's personal difficulties or mental health issues. However, Loan 4 was upheld as irresponsibly lent, though the decision does not detail the reasoning for this.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Gain Credit LLC, all decisions | 928 | 33% |
| Irresponsible lending, all decisions | 29,406 | 38% |
| Payday / short-term credit, all decisions | 9,704 | 50% |
Source
Read the original decision on the Financial Ombudsman Service website