Partially upheld: irresponsible lending and failure to address concerns about interest charges complaint against Loans 2 Go Limited
Financial Ombudsman decision DRN-6328746 of 2026-06-05T00:00:00+00:00. irresponsible lending and failure to address concerns about interest charges complaint against Loans 2 Go Limited. Outcome: Partially upheld.
Decision detail
| Reference | DRN-6328746 |
|---|---|
| Decision date | 2026-06-05T00:00:00+00:00 |
| Firm | Loans 2 Go Limited |
| Product | Personal loan |
| Claim type | irresponsible lending and failure to address concerns about interest charges |
| Outcome | Partially upheld |
| Remedy | Loans 2 Go Limited directed to pay Mrs K £200 compensation for failing to fully address her concerns about the fairness of the interest charged. The ombudsman also encouraged Mrs K to contact Loans 2 Go if she experiences financial difficulty to arrange an affordable repayment plan, and reminded Loans 2 Go of its obligation to treat customers in difficulty fairly. |
Summary
Mrs K complained that Loans 2 Go lent to her irresponsibly when providing a £600 loan at 937.4% APR in August 2023. She later complained in August 2025 that she was distressed about the total repayment amount of £2,219.88 and felt the loan was unaffordable and that the firm had taken advantage of her vulnerability. The ombudsman found that Loans 2 Go's lending decision was fair based on Mrs K's disposable income being sufficient to meet the £28.46 weekly repayments, even using conservative income estimates. However, the complaint was upheld in part because Loans 2 Go failed to fully address Mrs K's concerns about the fairness of the interest charged, and the ombudsman directed £200 compensation for this failing.
The Ombudsman's reasoning
The ombudsman found that Loans 2 Go carried out reasonable and proportionate checks, though they could have been more thorough. Using Mrs K's actual verified income of £1,360 per month and Loans 2 Go's calculated expenditure of £822 per month, her disposable income of £538 per month was sufficient to sustainably meet the weekly repayments of £28.46. The ombudsman concluded that even with more thorough verification, Loans 2 Go would have reached the same fair lending decision. However, the ombudsman upheld the complaint in part because Loans 2 Go failed to adequately address Mrs K's concerns about the fairness of the interest charged, warranting £200 compensation.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Loans 2 Go Limited, all decisions | 774 | 58% |
| Personal loan, all decisions | 22,070 | 30% |
Source
Read the original decision on the Financial Ombudsman Service website