Not upheld: irresponsible lending - inadequate affordability checks complaint against Gain Credit LLC trading as Lending Stream

Decision detail

Summary

Mr M complained that Lending Stream irresponsibly lent him £1,500 without conducting adequate affordability checks. Lending Stream assessed Mr M's declared income of £2,500 against declared outgoings of £1,000 and estimated essential living costs of £631, with credit commitments of £500. The ombudsman found that using Mr M's actual income of approximately £2,300 from bank statements, he would have approximately £920 remaining monthly after the new loan repayments, constituting a substantial buffer. The ombudsman concluded that Lending Stream's affordability assessment was proportionate and reasonable, and that the lending decision was fair. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman assessed whether Lending Stream conducted proportionate affordability checks appropriate to the loan amount and circumstances. Using Mr M's actual income of approximately £2,300 (rather than declared £2,500), estimated essential living costs of £631, and credit commitments of £500, the ombudsman calculated that Mr M would have approximately £920 remaining monthly after the new loan repayments. This substantial buffer, combined with evidence that existing borrowing was being managed well and no clear pattern of recent credit reliance visible at the time, satisfied the ombudsman that the lending decision was fair and responsible. The ombudsman also noted that Lending Stream had no knowledge of Mr M's gambling issues and found no evidence of financial difficulties that should have prompted further investigation.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website