Not upheld: irresponsible lending complaint against Fintern Ltd trading as Abound

Decision detail

Summary

Miss B complained that Abound lent irresponsibly when providing two loans: £6,500 in November 2024 and £11,994.22 in December 2025 (used partly to repay the first loan). Miss B argued that additional checks should have been conducted and that her limited disposable income and increasing debts indicated the loans were unaffordable. The ombudsman found that Abound's checks using open banking data were reasonable and proportionate, showing Miss B had sufficient income to cover all commitments with approximately £120 and £107 disposable income respectively. The ombudsman noted Miss B's clean credit history with no defaults or arrears, and that the second loan actually reduced her overall monthly credit repayments despite increased total debt. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Abound's pre-lending checks were reasonable and proportionate for both loans. The checks, based on actual open banking data, showed Miss B had sufficient income to cover her existing commitments plus the new loan repayments, with modest disposable income remaining. Although disposable income was limited (£120 for Loan One, £107 for Loan Two), this was not considered unaffordable given the detailed expense calculations undertaken and the debt consolidation purpose. Miss B's clean credit history with no defaults or arrears suggested she was managing her commitments, and the second loan actually reduced her overall monthly credit repayments despite increased total debt.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website