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

Decision detail

Summary

Mr R complained that Lending Stream lent him £300 in June 2025 without sufficient affordability checks, particularly given that open banking access should have revealed his precarious financial situation. The loan defaulted in October 2025. The ombudsman found that for a first, modest short-term loan, Lending Stream's checks were proportionate: it verified income at £1,449.05 through open banking, estimated outgoings at £1,111.24 using statistical data and credit search results, and confirmed repayments of approximately £100 per month were affordable. Although Mr R had historical defaults from a year prior, recent account management was satisfactory. The ombudsman concluded the checks were reasonable and declined to uphold the complaint.

The Ombudsman's reasoning

For a first loan of modest amount over a short term, less thorough checks were proportionate. The ombudsman found Lending Stream's checks were reasonable: it verified income through open banking (reducing declared income), cross-checked outgoings against statistical data and credit search results, and reviewed credit history. Although Mr R had historical defaults, there were no recent adverse credit indicators and recent account management appeared satisfactory. The loan repayments of just over £100 per month were affordable against verified income of £1,449.05 and adjusted outgoings of £1,111.24, leaving sufficient disposable income. Even if Lending Stream had reviewed bank statements, the ombudsman's own review showed this would not have changed the lending decision.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website