Upheld: irresponsible lending - insufficient affordability checks complaint against PROPEL HOLDINGS (UK) LIMITED trading as Quidmarket
Financial Ombudsman decision DRN-6215162 of 2026-04-28T00:00:00+00:00. irresponsible lending - insufficient affordability checks complaint against PROPEL HOLDINGS (UK) LIMITED trading as Quidmarket. Outcome: Upheld.
Decision detail
| Reference | DRN-6215162 |
|---|---|
| Decision date | 2026-04-28T00:00:00+00:00 |
| Firm | PROPEL HOLDINGS (UK) LIMITED trading as Quidmarket |
| Product | instalment loan |
| Claim type | irresponsible lending - insufficient affordability checks |
| Outcome | Upheld |
| Remedy | Remove all interest, fees and charges from the loan balance and treat repayments as principal only. Refund any overpayments with simple interest at Bank of England base rate plus one percentage point from date of overpayment to settlement. If an outstanding balance remains, Quidmarket should agree an affordable repayment plan with Miss B. Remove any adverse information recorded on Miss B's credit file relating to the loan. |
Summary
Miss B complained that Quidmarket lent her £1,000 without conducting sufficient affordability checks. Although Quidmarket verified her income of £2,300 monthly and assessed her outgoings at approximately £947-£1,367, the credit search revealed she had a telecoms account three months in arrears, a loan in a payment arrangement, a credit card over its limit, and had opened five accounts in six months. The ombudsman upheld the complaint, finding that this information demonstrated Miss B was struggling to meet existing commitments and was unlikely to afford the loan without undue difficulty. Quidmarket was ordered to remove all interest, fees and charges, refund any overpayments with interest, and remove adverse credit file information.
The Ombudsman's reasoning
Although Quidmarket conducted proportionate checks for a first loan by verifying income and assessing outgoings, the credit search results clearly demonstrated Miss B was struggling to meet existing creditors. The combination of recent missed payments, a payment arrangement on another loan, a credit card over limit, multiple recent account openings, and the fact that Miss B would spend the majority of her income on credit commitments meant the loan was unsustainable. Quidmarket should have either conducted further checks or declined the application based on this information.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| PROPEL HOLDINGS (UK) LIMITED trading as Quidmarket, all decisions | 9 | 11% |
Source
Read the original decision on the Financial Ombudsman Service website