Not upheld: irresponsible lending / affordability assessment complaint against Inclusive Finance Limited trading as Creditspring

Decision detail

Summary

Mrs S complained that Creditspring lent to her irresponsibly across four loans between June 2022 and March 2025, with amounts ranging from £500 to £2,000. Creditspring conducted affordability checks based on Mrs S's declared income, expenditure, and credit history before each loan. The ombudsman found these checks were proportionate given the modest loan amounts and monthly repayments, and that the results indicated sustainable affordability. Although Mrs S's declared income declined over time, she had not disclosed employment difficulties and maintained sufficient disposable income. The ombudsman concluded Creditspring did not lend irresponsibly and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman applied the regulatory requirement for reasonable and proportionate affordability assessments that are borrower-focused. Given the modest loan amounts, relatively low monthly repayments (including membership fees), the natural protection of staged tranches, and Mrs S's declared disposable income, the checks were proportionate. The results indicated sustainable affordability. The repetitive nature of borrowing was not concerning given the requirement to repay earlier tranches before new advances. Mrs S's undisclosed true financial difficulties were not something proportionate checks should have uncovered.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website