Not upheld: irresponsible lending complaint against Inclusive Finance Limited trading as Creditspring

Decision detail

Summary

Mr P complained that Creditspring lent irresponsibly when approving a £500 loan in March 2022, arguing he was experiencing financial difficulty with multiple payday and high-cost loans. Creditspring verified Mr P's income at £2,800 per month through CATO data and reviewed CRA information showing 11 unsecured loans, 2 credit cards, a historic default from 29 months prior, and no current arrears. The ombudsman found that Creditspring's proportionate checks, which calculated disposable income of approximately £1,604 against maximum repayments of £57.70 per month, were reasonable and supported a fair lending decision. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Creditspring's checks were proportionate to the loan type, amount, duration and cost. The checks assessed Mr P's ability to afford and sustainably repay the loan. With disposable income of approximately £1,604 and maximum monthly repayments of £57.70, Mr P had sufficient buffer for emergencies. The historic default was appropriately treated as historic given the 29-month gap, and existing credit was up to date. The cautious lending structure (second drawdown only after first repayment) further supported the fairness of the decision.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website