Not upheld: irresponsible lending - inadequate affordability checks complaint against Gain Credit LLC trading as Drafty

Decision detail

Summary

Mr S complained that Drafty provided him with a £2,610 running credit facility without conducting appropriate affordability checks and that the facility was unaffordable and detrimental to his financial and mental wellbeing. Drafty approved the facility based on Mr S's declared income of £4,016 monthly and outgoings of £1,200, independently verified the income, and conducted a credit check. Although the credit check revealed adverse markers and significant existing debt, Drafty adjusted expenditure using national data to £2,736, leaving disposable income of £1,280 monthly. The ombudsman found that while the initial checks were not fully proportionate, the facility appeared affordable based on available evidence and rejected arguments that deeper investigation was required. The ombudsman also found Drafty appropriately monitored the account and took action when Mr S missed payments in November and December 2025 by suspending the account.

The Ombudsman's reasoning

The ombudsman found that although Drafty's initial affordability checks were not fully proportionate given the adverse credit information, the facility was still affordable based on the income and expenditure data gathered. With adjusted expenditure of £2,736 using national statistical data, Mr S had disposable income of £1,280 monthly, which was sufficient to service the facility even at the hypothetical £300 monthly repayment level. The ombudsman rejected the argument that Drafty should have conducted a full financial review, finding this would have been disproportionate. The ombudsman also found that Drafty appropriately monitored the account and took action when repayment difficulties emerged by suspending the account.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website