Not upheld: irresponsible lending - alleged failure to conduct sufficient affordability checks complaint against Quidie Limited trading as Fernovo
Financial Ombudsman decision DRN-6281849 of 2026-04-28T00:00:00+00:00. irresponsible lending - alleged failure to conduct sufficient affordability checks complaint against Quidie Limited trading as Fernovo. Outcome: Not upheld.
Decision detail
| Reference | DRN-6281849 |
|---|---|
| Decision date | 2026-04-28T00:00:00+00:00 |
| Firm | Quidie Limited trading as Fernovo |
| Product | short-term loan |
| Claim type | irresponsible lending - alleged failure to conduct sufficient affordability checks |
| Outcome | Not upheld |
| Remedy | No remedy ordered. The ombudsman noted that Quidie had offered in its final response letter to reduce the balance on the last loan by £55 and delete all loans from Mr S's credit file as a gesture of goodwill, but advised Mr S to contact Quidie to confirm if this offer remains available. |
Summary
Mr S complained that Quidie Limited irresponsibly lent to him by failing to conduct sufficient affordability checks before approving four loans between July and December 2025 (£250, £350, £400, and £500). Mr S argued that the pattern of repeat borrowing, combined with his existing payday loans, buy-now-pay-later products, debt management plan status, and credit file defaults, should have triggered more thorough checks. The ombudsman found that Quidie's proportionate affordability checks, combining income declarations, credit reference agency verification, and Money Advice Service averages, were appropriate for each loan stage. The ombudsman noted that one loan was repaid the same day at no cost, disposable income remained sufficient throughout, no new adverse payment information appeared, and overall indebtedness decreased, providing no basis for bank statement review or loan decline. The complaint was not upheld, and no regulatory breach or unfair relationship under section 140A was found.
The Ombudsman's reasoning
The ombudsman applied CONC 5.2A requirements for proportionate affordability checks. For loan 1, the checks combining declarations, credit reference agency verification, and MAS averages were proportionate for a first loan. For loans 2-4, while the pattern of borrowing was noted, the ombudsman found no evidence that lending had become unsustainable: disposable income calculations showed affordability; no new adverse payment information appeared; overall indebtedness decreased; and buy-now-pay-later accounts were being managed as expected. The ombudsman rejected the argument that bank statements should have been obtained, finding this would have been disproportionate given the check results. Historic defaults from 2020-2021 were not concerning given the passage of time and lack of recent adverse information. The ombudsman concluded that while disposable income calculations may not have been entirely accurate, Quidie conducted proportionate checks based on available information and circumstances.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Quidie Limited trading as Fernovo, all decisions | 4 | 0% |
Source
Read the original decision on the Financial Ombudsman Service website