Not upheld: irresponsible lending complaint against Fairscore Ltd trading as Updraft

Decision detail

Summary

Mr C complained that Fairscore Ltd trading as Updraft irresponsibly provided him with a £5,000 loan on 1 August 2025. Mr C had existing unsecured debts of £24,200, some adverse credit data, and was gambling at the time. Updraft verified his income at approximately £3,698 monthly through open banking data and conducted credit checks showing his existing commitments. The ombudsman found that Updraft's checks were reasonable and proportionate, Mr C's debt was manageable relative to his income, and the loan's intended purpose of debt consolidation would improve his position. The complaint was not upheld, and no remedy was ordered.

The Ombudsman's reasoning

The ombudsman found that Updraft's credit checks were reasonable and proportionate. Although Mr C had some adverse credit data and recent account openings, he was generally managing active accounts well and his total debt was not excessive compared to his income. The open banking data verified sufficient income to support the loan repayments, and the loan's intended purpose of debt consolidation would improve Mr C's financial position. While gambling transactions were identified, the gathered data did not render the loan unaffordable, and Mr C had not disclosed his gambling to Updraft. Based on all information available to Updraft, there was nothing to suggest Mr C would be unable to sustainably repay the loan.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website