Not upheld: Other regulated complaint complaint against Quidie Limited trading as Fernovo

Decision detail

Summary

Miss B complained that Fernovo held her liable for a £300 loan she claimed she did not apply for and had no knowledge of, alleging it was taken out fraudulently following the theft of her travel bag in June 2025. Fernovo maintained it was reasonable to hold Miss B liable as it had seen no evidence of a third party taking out the loan or benefiting from the funds. The ombudsman found that while Miss B may have been a scam victim, the evidence on balance of probabilities suggested she was aware of the loan funds, noting her account's consistent use for legitimate transactions, her failure to report a stolen card to her bank, and the illogical nature of a fraudster transferring funds between accounts in her name. The complaint was not upheld, though Fernovo agreed to waive all interest, fees, and charges, requiring Miss B to repay only the £300 principal under a reasonable repayment plan.

The Ombudsman's reasoning

The ombudsman found that while Miss B may have fallen victim to a scam, the evidence did not support that a third party applied for the loan without her knowledge. The key factors were: (1) Fernovo used genuine details and sent verification to Miss B's real email address, making it reasonable for Fernovo not to suspect fraud at application; (2) Miss B's failure to report a stolen bank card to her bank when she called on 16 July 2025 undermined her credibility; (3) the account activity showed consistent use including transfers between Miss B's own accounts and payments for legitimate outgoings, suggesting awareness; (4) it was illogical for a dishonest third party to transfer funds between accounts in Miss B's name rather than withdraw cash for personal benefit; (5) on balance of probabilities, Miss B was likely aware of the loan funds crediting her account despite her claims of unawareness.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website