Upheld: irresponsible lending complaint against East End Fair Finance Limited trading as Fair Finance
Financial Ombudsman decision DRN-6240793 of 2026-04-01T00:00:00+00:00. irresponsible lending complaint against East End Fair Finance Limited trading as Fair Finance. Outcome: Upheld.
Decision detail
| Reference | DRN-6240793 |
|---|---|
| Decision date | 2026-04-01T00:00:00+00:00 |
| Firm | East End Fair Finance Limited trading as Fair Finance |
| Product | loan |
| Claim type | irresponsible lending |
| Outcome | Upheld |
| Remedy | Fair Finance must refund all interest and charges. If Mr M overpaid, refund overpayments with 8% simple interest from the date paid. If capital remains outstanding, arrange an affordable payment plan. Remove all adverse information from Mr M's credit file upon completion or if overpaid. |
Summary
Mr M complained that East End Fair Finance Limited irresponsibly lent him £500 in February 2025. Although the firm conducted reasonable checks including income verification and a credit check, the results showed Mr M had a delinquent account with an arrangement, recent arrears, was at his limit on credit cards and overdraft, had returned direct debits, and had recently taken another loan. The ombudsman upheld the complaint, finding that this collective evidence indicated Mr M was struggling financially and the loan should not have been provided. Fair Finance must refund all interest and charges, and remove adverse credit file information.
The Ombudsman's reasoning
Although Fair Finance's initial checks were reasonable and proportionate, the information gathered showed Mr M was struggling to manage existing credit. The combination of a delinquent account, recent arrears, maxed-out credit facilities, returned direct debits, and recent additional borrowing collectively indicated Mr M was unlikely to sustainably repay the loan. The firm had sufficient information to realise the lending was irresponsible.
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