Not upheld: irresponsible lending complaint against Fairscore Ltd trading as Updraft

Decision detail

Summary

Mr T complained that Updraft lent irresponsibly by approving four loans between November 2022 and November 2024 while he was still repaying existing loans, causing financial strain. Updraft conducted affordability checks using loan applications, open banking data, CRA checks, and ONS data, verifying income and using higher expense estimates than Mr T declared. The ombudsman found that Updraft's checks were reasonable and proportionate, disposable income remained adequate for all loans, and Mr T's accounts were well-managed with no arrears or missed payments. The complaint was not upheld as the ombudsman concluded Updraft acted fairly in lending decisions.

The Ombudsman's reasoning

The ombudsman applied the regulatory requirement for proportionate checks considering the type, amount, duration and cost of credit, and the borrower's individual circumstances. For each loan, Updraft conducted checks using multiple data sources and verified income. The ombudsman found that Updraft used caution by applying higher expense estimates than Mr T declared, and that disposable income remained adequate even after loan repayments. The ombudsman noted that while Mr T's overall credit increased by the fourth loan, this alone was insufficient to indicate financial difficulty given the absence of arrears, on-time payments, early settlement, and no prior contact from Mr T about financial problems.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website