Upheld: irresponsible lending complaint against Lloyds Bank PLC
Financial Ombudsman decision DRN-6288719 of 2026-05-20T00:00:00+00:00. irresponsible lending complaint against Lloyds Bank PLC. Outcome: Upheld.
Decision detail
| Reference | DRN-6288719 |
|---|---|
| Decision date | 2026-05-20T00:00:00+00:00 |
| Firm | Lloyds Bank PLC |
| Product | loan |
| Claim type | irresponsible lending |
| Outcome | Upheld |
| Remedy | Lloyds Bank PLC to write off the remaining debt in full and remove all adverse information relating to the loan from Miss M's credit file, including information recorded by the debt purchaser. |
Summary
Miss M complained that Lloyds Bank PLC lent to her irresponsibly when it provided an £11,000 loan in February 2023. She struggled to repay and received a default notice in November 2024. Lloyds accepted the loan was irresponsible and initially offered to refund interest with a remaining balance, but Miss M disputed the calculation and wanted immediate removal of adverse credit information. The ombudsman upheld the complaint and Lloyds agreed to write off the remaining debt in full and remove all adverse information from Miss M's credit file.
The Ombudsman's reasoning
The ombudsman upheld the complaint because Lloyds accepted that the loan was lent irresponsibly and should not have been agreed. The ombudsman considered the bank's offer to write off the remaining debt and remove all adverse information from the credit file to be a fair resolution.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Lloyds Bank PLC, all decisions | 19,826 | 16% |
Source
Read the original decision on the Financial Ombudsman Service website