Not upheld: unauthorized borrowing / alleged fraud complaint against Sky UK Limited
Financial Ombudsman decision DRN-6292641 of 2026-06-12T00:00:00+00:00. unauthorized borrowing / alleged fraud complaint against Sky UK Limited. Outcome: Not upheld.
Decision detail
| Reference | DRN-6292641 |
|---|---|
| Decision date | 2026-06-12T00:00:00+00:00 |
| Firm | Sky UK Limited |
| Product | Personal loan |
| Claim type | unauthorized borrowing / alleged fraud |
| Outcome | Not upheld |
| Remedy | No remedy ordered. The ombudsman reminded Sky of their responsibility to treat Mr R's current financial circumstances with due consideration and forbearance, including working with Mr R to make affordable repayments if unable to make a lump sum payment. |
Summary
Mr R complained to Sky UK Limited about a fixed sum loan taken out in his name in January 2024 for a mobile telephone device, claiming it was fraudulently obtained by a family member (X) without his authorization. Mr R discovered the loan around six months later when he noticed credit file searches, and agreed to a repayment arrangement with Sky in July 2024 to prevent adverse credit information, but later claimed this was not an admission of liability. The loan subsequently fell into arrears and was referred to a debt collection agent. The ombudsman found that the evidence, including the use of Mr R's contact details in the application, delivery to his home address, payment conduct by X, and Mr R's agreement to the repayment arrangement without subsequent legal action, supported Sky's position that Mr R authorized the loan or gave apparent authority to X. The complaint was not upheld, though Sky was reminded to treat Mr R's financial circumstances with forbearance.
The Ombudsman's reasoning
The ombudsman applied the balance of probabilities test given incomplete and contradictory evidence. The key factors supporting Sky's position were: (1) the application used Mr R's own email and postal address; (2) the handset was delivered to Mr R's home address; (3) payments and account management were conducted by X, which is not typical fraudster behavior; (4) Mr R agreed to a repayment arrangement in July 2024, which Sky's records suggest constituted an acknowledgment that the handset was ordered for X to use; (5) Mr R did not take legal action against X or raise concerns again with Sky until April 2025, suggesting satisfaction with the arrangement. While acknowledging the absence of call recordings, the ombudsman found the totality of evidence supported Sky's view that Mr R authorized the loan application or gave apparent authority to X.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Sky UK Limited, all decisions | 62 | 41% |
| Personal loan, all decisions | 22,070 | 30% |
Source
Read the original decision on the Financial Ombudsman Service website