Partially upheld: irresponsible lending - failure to properly assess affordability and significant adverse impact on financial situation complaint against Gain Credit LLC trading as Lending Stream
Financial Ombudsman decision DRN-6347905 of 2026-06-11T00:00:00+00:00. irresponsible lending - failure to properly assess affordability and significant adverse impact on financial situation complaint against Gain Credit LLC trading as Lending Stream. Outcome: Partially upheld.
Decision detail
| Reference | DRN-6347905 |
|---|---|
| Decision date | 2026-06-11T00:00:00+00:00 |
| Firm | Gain Credit LLC trading as Lending Stream |
| Product | Payday / short-term credit |
| Claim type | irresponsible lending - failure to properly assess affordability and significant adverse impact on financial situation |
| Outcome | Partially upheld |
| Remedy | Lending Stream must: (1) Rework Loans 2, 3, 4 and 5 by removing all interest and charges; (2) Deduct any payments made by Mr H from the remaining capital amount; (3) If Mr H overpaid, refund the excess plus 8% simple interest from date of overpayment to settlement; (4) If Mr H underpaid, work with him to agree an affordable repayment plan; (5) Remove all adverse information relating to Loans 2, 3, 4 and 5 from Mr H's credit file once capital is cleared. |
Summary
Mr H complained that Lending Stream lent to him irresponsibly by providing five loans between November 2024 and February 2025. The ombudsman found that while Loan 1 was appropriately lent, Loans 2, 3, 4 and 5 were lent unfairly. Although Lending Stream conducted reasonable affordability checks, it failed to properly apply the findings: Mr H's actual income was £1,324.32 (not his declared £2,300), and after accounting for expenses and loan repayments, he had only £52.77 monthly surplus—insufficient to cover unexpected costs over six months. This was compounded by recent active delinquencies and high indebtedness relative to income. The ombudsman upheld the complaint in part and directed Lending Stream to remove all interest and charges from Loans 2-5, refund any overpayments with 8% interest, and remove adverse credit file information.
The Ombudsman's reasoning
The ombudsman found that while Lending Stream carried out reasonable and proportionate checks for Loan 2, it failed to fairly apply the information gathered. Although Mr H technically had sufficient funds to meet repayments (£52.77 monthly surplus), this left him with an inadequate margin to absorb unexpected costs over the six-month loan term, constituting a significant adverse impact on his financial situation contrary to CONC 5.2A.12 R. This was compounded by recent active delinquencies and high indebtedness relative to income. For Loans 3, 4 and 5, the ombudsman agreed with the investigator's findings that these should not have been lent, as the pattern of lending and Mr H's deteriorating financial position made further lending irresponsible. Loan 1 was appropriately lent as it was early in the relationship with no established pattern of concern.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Gain Credit LLC trading as Lending Stream, all decisions | 12 | 33% |
| Payday / short-term credit, all decisions | 9,689 | 50% |
Source
Read the original decision on the Financial Ombudsman Service website