Upheld: irresponsible lending and unaffordable credit complaint against Fairscore Limited t/a Updraft
Financial Ombudsman decision DRN-6262739 of 2026-05-18T00:00:00+00:00. irresponsible lending and unaffordable credit complaint against Fairscore Limited t/a Updraft. Outcome: Upheld.
Decision detail
| Reference | DRN-6262739 |
|---|---|
| Decision date | 2026-05-18T00:00:00+00:00 |
| Firm | Fairscore Limited t/a Updraft |
| Product | personal loan |
| Claim type | irresponsible lending and unaffordable credit |
| Outcome | Upheld |
| Remedy | Fairscore must: (1) add up total repayments made by Mr C and deduct from total money received; (2) if Mr C overpaid, refund the overpayment plus 8% simple interest from dates of overpayment to settlement; (3) if capital balance remains, work with Mr C to agree an affordable and sustainable repayment plan; (4) remove any relevant adverse credit entries from Mr C's credit file once account is cleared. |
Summary
Mr C complained that Fairscore irresponsibly lent him £11,200 at 27.2% APR for debt consolidation when the loan was unaffordable. Fairscore assessed Mr C's net monthly disposable income at £406.79 based on verified income of £5,781.79 and assessed expenditure of £5,375, and found no arrears on his credit file. However, the Ombudsman upheld the complaint, finding that reasonable and proportionate checks would have revealed Mr C had an over limit credit card, an over limit overdraft with accruing interest, and approximately £72,000 in unsecured debt across 14 accounts, making the loan unaffordable. Fairscore must refund interest and charges, allow repayment of capital only, and remove adverse credit entries once the account is cleared.
The Ombudsman's reasoning
The Ombudsman found that although Fairscore's use of statistical data for expenditure assessment was reasonable in principle, their overall checks were not reasonable and proportionate given the amount, type and cost of credit and Mr C's financial circumstances. The checks should have revealed that Mr C had an over limit credit card, an over limit overdraft facility with accruing interest, and that his average expenditure on credit commitments, housing and essential expenditure meant the loan was unaffordable. Therefore, Fairscore did not treat Mr C fairly in granting the loan.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Fairscore Limited t/a Updraft, all decisions | 2 | 50% |
Source
Read the original decision on the Financial Ombudsman Service website