Upheld: irresponsible lending complaint against Loans 2 Go Limited trading as Loans 2 Go
Financial Ombudsman decision DRN-6270676 of 2026-04-09T00:00:00+00:00. irresponsible lending complaint against Loans 2 Go Limited trading as Loans 2 Go. Outcome: Upheld.
Decision detail
| Reference | DRN-6270676 |
|---|---|
| Decision date | 2026-04-09T00:00:00+00:00 |
| Firm | Loans 2 Go Limited trading as Loans 2 Go |
| Product | Personal loan |
| Claim type | irresponsible lending |
| Outcome | Upheld |
| Remedy | L2G must refund all interest, fees and charges applied to the loan. If total repayments exceed the amount received, refund overpayments plus time-weighted Bank of England base rate plus 1% simple interest per year from date of overpayment. If capital balance remains, arrange affordable payment plan. Remove all adverse information from Mr C's credit file upon settlement or after balance is cleared. |
Summary
Mr C applied for a £250 loan from L2G in July 2025 with verified income of £1,323 per month. L2G's affordability assessment showed approximately £220 disposable income monthly and approved the loan at 678.9% APR. However, Mr C's credit file revealed he had opened 10 new credit commitments in the previous 12 months, with 9 opened in the 4 months before the application, and a loan from April 2025 was already subject to a payment arrangement by July 2025. The ombudsman upheld the complaint, finding L2G lent irresponsibly by failing to recognise Mr C's unsustainable reliance on credit despite clear warning signs. L2G was directed to refund all interest, fees and charges, plus interest on any overpayments, and remove adverse credit file information.
The Ombudsman's reasoning
The ombudsman found that while L2G completed some affordability checks and the loan payments appeared affordable on paper, the pattern of Mr C's borrowing behaviour demonstrated unsustainable reliance on credit. The fact that a loan opened only 2 months before the L2G application was already subject to a payment arrangement was a clear sign Mr C was struggling. The ombudsman concluded that even for a subprime lender, the rapid accumulation of 9 new credit commitments in 4 months indicated Mr C was borrowing unsustainably and L2G should not have lent.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Loans 2 Go Limited trading as Loans 2 Go, all decisions | 5 | 30% |
| Personal loan, all decisions | 22,762 | 30% |
Source
Read the original decision on the Financial Ombudsman Service website