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

Decision detail

Summary

Miss B complained that Updraft irresponsibly lent her £8,900 over 61 months, arguing that the affordability assessment was not meaningful and failed to properly consider her benefit income and broader financial position. Updraft approved the loan after conducting CRA checks, obtaining open banking data, and using modelling alongside Miss B's declarations to assess affordability. The ombudsman found that Updraft's checks were proportionate and responsible, using higher outgoings figures where modelling suggested greater expenses, and that the repayments were affordable and sustainable despite not using all available income. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Updraft's affordability assessment was meaningful and proportionate because it did not rely solely on isolated figures or generic modelling. Instead, Updraft cross-checked Miss B's declarations against CRA data and modelling, using the higher figures where modelling suggested greater outgoings. Although Updraft did not use all of Miss B's available income, the assessment showed the repayments would be affordable and sustainable. The ombudsman concluded that further checks would not have been proportionate given the positive affordability position and lack of adverse credit information.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website