Partially upheld: irresponsible lending complaint against East End Fair Finance Limited trading as Fair Finance
Financial Ombudsman decision DRN-6227424 of 2026-04-02T00:00:00+00:00. irresponsible lending complaint against East End Fair Finance Limited trading as Fair Finance. Outcome: Partially upheld.
Decision detail
| Reference | DRN-6227424 |
|---|---|
| Decision date | 2026-04-02T00:00:00+00:00 |
| Firm | East End Fair Finance Limited trading as Fair Finance |
| Product | loan |
| Claim type | irresponsible lending |
| Outcome | Partially upheld |
| Remedy | A) Remove all interest, fees and charges from loan 2 balance and treat repayments as principal repayments. Refund any overpayments with 8% simple interest from date of overpayment to settlement date. B) If outstanding balance remains, Fair Finance should agree an affordable repayment plan with Mr J. C) Remove any adverse credit file information relating to loan 2. |
Summary
Mr J complained that Fair Finance lent him £600 (loan 2) without conducting sufficient affordability checks. Fair Finance had conducted income and expenditure checks and obtained an Open Banking report. However, the report revealed Mr J was spending over £700 monthly on gambling and had significant high-cost credit commitments, totalling nearly £1,100 of his £1,300 monthly income before living costs. The Ombudsman upheld the complaint regarding loan 2, finding that Fair Finance had the information necessary to determine the loan was unsustainable, particularly given regulatory guidance on gambling-related vulnerability. Fair Finance was ordered to remove interest and charges from loan 2, refund overpayments with interest, and remove adverse credit file information.
The Ombudsman's reasoning
While Fair Finance conducted proportionate checks for the loan amount, it failed to properly consider the information gathered. The Open Banking report clearly showed Mr J was spending nearly 44% of his income on gambling and high-cost credit commitments, with approximately £1,100 of his £1,300 monthly income committed to these and living costs before the new loan repayment. The regulator's 2021 policy document indicates customers who gamble are more susceptible to harm and warrant further consideration. Fair Finance had all the information needed to determine that Mr J was not in a position to sustainably repay the second loan.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| East End Fair Finance Limited trading as Fair Finance, all decisions | 5 | 60% |
Source
Read the original decision on the Financial Ombudsman Service website