Upheld: irresponsible lending complaint against Loans 2 Go Limited
Financial Ombudsman decision DRN-6279174 of 2026-04-16T00:00:00+00:00. irresponsible lending complaint against Loans 2 Go Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6279174 |
|---|---|
| Decision date | 2026-04-16T00:00:00+00:00 |
| Firm | Loans 2 Go Limited |
| Product | loan |
| Claim type | irresponsible lending |
| Outcome | Upheld |
| Remedy | L2G directed to: (a) refund all interest, fees and charges applied to the loan from the date of approval; (b) if Miss B paid more than she received, refund overpayments with interest at Bank of England base rate plus 1% simple interest per year from date of overpayment; (c) remove all adverse information regarding the account from Miss B's credit file; (d) if capital balance remains outstanding, arrange an affordable and suitable payment plan with Miss B and remove adverse information once cleared. |
Summary
Miss B complained that Loans 2 Go Limited lent irresponsibly when approving her loan application in November 2025 to refinance an existing loan and borrow additional funds. L2G had verified her income at £1,260 net monthly, completed a credit search, and conducted an affordability assessment showing £200 disposable income. However, Miss B's credit file revealed she had opened eight new loans between £200-£1,000 in the preceding seven months and was in arrears on a current account. The ombudsman upheld the complaint, finding that this pattern of borrowing indicated Miss B was reliant on credit to make ends meet and was borrowing unsustainably. L2G was directed to refund all interest, fees and charges, and remove adverse information from Miss B's credit file.
The Ombudsman's reasoning
Whilst L2G completed proportionate checks on the surface, the pattern of Miss B opening eight new loans of modest amounts in seven months strongly indicated she was reliant on credit to make ends meet. The fact that Miss B was refinancing her original loan whilst only part way through its term, combined with her arrears on a current account and the volume of recent loan applications, demonstrated unsustainable borrowing. L2G should have taken a wider view of Miss B's circumstances and borrowing history and declined to lend.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Loans 2 Go Limited, all decisions | 776 | 58% |
Source
Read the original decision on the Financial Ombudsman Service website