Not upheld: irresponsible lending complaint against Shop Direct Finance Company Limited

Decision detail

Summary

Mr W complained that SDFC irresponsibly lent him £500 in May 2025 despite knowing of his vulnerabilities from a previous account relationship. SDFC rejected the complaint, stating their checks were proportionate and the limit was affordable. During the complaint process, SDFC wrote off the outstanding balance. The ombudsman did not uphold the complaint, finding that SDFC's debt write-off was fair and sufficient remedy, as Mr W had incurred no charges, made no payments, and therefore suffered no financial loss. The ombudsman declined to order further compensation or account reinstatement.

The Ombudsman's reasoning

The ombudsman applied the standard approach to irresponsible lending complaints: putting the consumer back in the position the lending did not happen. Since SDFC applied no charges and Mr W made no payments, he was not financially out of pocket. SDFC's decision to write off the capital debt meant Mr W suffered no loss. The ombudsman concluded this remedy was sufficient and appropriate, particularly given Mr W's vulnerabilities and the fact he had received the benefit of goods ordered.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website