Not upheld: Irresponsible lending complaint against Gain Credit LLC (trading as Lending Stream)

Decision detail

Summary

Mr P complained that Lending Stream lent to him irresponsibly when providing two short-term loans (£600 in May 2025 and £700 in June 2025). He argued that more detailed checks would have revealed his true financial difficulties. Lending Stream defended its position, stating that proportionate checks had been carried out and the results suggested the loans were affordable. The ombudsman found that Lending Stream's checks, including CRA review and affordability assessment with expense buffers, were proportionate to the circumstances and did not reveal any concerns. The ombudsman concluded that there was no regulatory requirement for more detailed verification and that the firm was entitled to rely on its proportionate checks and Mr P's declared income. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the principle that lenders must carry out proportionate checks appropriate to the type and term of lending. The checks undertaken by Lending Stream, including CRA review and affordability assessment with expense buffers, were proportionate in the circumstances. The results of these checks did not reveal any cause for concern, and there was no regulatory requirement for Lending Stream to conduct more detailed verification such as bank statement review. Since the proportionate checks did not suggest the loans were unaffordable, Lending Stream was entitled to rely upon them and could not have known that lending was irresponsible.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website