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

Decision detail

Summary

Miss L complained that Fintern Ltd trading as Abound provided her with a £10,000 loan in June 2025 irresponsibly. The ombudsman reviewed Abound's lending checks, which included credit checks and open banking data verification of Miss L's income and expenses. While Miss L had existing credit commitments of around £2,025 per month against total income of £4,282, the ombudsman found this was reasonable given the loan was intended for debt consolidation and Miss L had sufficient disposable income of approximately £497 monthly to cover the £329 loan repayment. The complaint was not upheld as the ombudsman concluded Abound acted fairly and there was nothing to suggest Miss L would be unable to sustainably repay the loan.

The Ombudsman's reasoning

The ombudsman found that Abound's pre-lending checks were reasonable and proportionate. The credit checks revealed no serious adverse indicators, and while Miss L's existing credit commitments were high relative to income, the loan was intended for debt consolidation which would improve her position. Open banking data verified sufficient income and disposable income to cover the loan repayments of £329 per month alongside existing commitments and living costs. The ombudsman concluded there was nothing to suggest Miss L would be unable to sustainably repay the loan based on the information Abound gathered.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website